Investment in Western Region essential for Ireland's overall economic balance and success
MARKING 25 years of driving balanced growth in Ireland’s western region, the Western Development Commission (WDC) has unveiled a landmark report highlighting the region's remarkable progress and the critical challenges still facing the west and northwest.
The report, commissioned by the WDC and prepared by Indecon, Ireland’s leading independent economic research and consultancy group, and the WDC, highlights notable successes, such as job creation, economic growth, and enhanced third-level educational provision.
It also sheds light on persistent gaps in income, housing, and rural infrastructure.
Speaking on the findings, Allan Mulrooney, CEO of the WDC, said: “While we’ve achieved a lot in the last 25 years, the western and northwestern Region is at a tipping point. Our report shows that with strategic investment and collaboration, we can build on this foundation to create an even more prosperous and sustainable future for the area.”
Economic Growth Amid Income Disparities
The WDC has played a pivotal role in boosting the region’s economy, helping companies generate over €3.35 billion in cumulative revenue and €2.4 billion in exports since its inception. Companies supported by the state agency contributed €404 million in tax revenues, providing much-needed support for public services. When wider (indirect and induced) impacts are included, the economy-wide output impact of the WDC is estimated to be almost €4.8 billion.
However, despite these successes, the report reveals a stark economic disparity, with the average disposable income in the western region remaining just over €3,000 below the national average.
Mulrooney continued: “This income gap shows that while the region has come far, we need targeted investment in high-value areas like infrastructure, connectivity, and renewable energy to ensure long-term prosperity for the region.”
Gross Value Added (GVA) per capita in the West is only 53.37% of the national average (€43,540 vs. €81,573), and for the Border Region, it is even lower at 29.7% of the national average (€24,227). The West Region’s share of national GVA has decreased from 6.3% in 1999 to 5.07% in 2021 underscoring the importance of targeted regional development to support high-value sector investment and achieve balanced economic growth nationwide.
Housing Shortages Threaten Future Development
Housing is identified as one of the most critical challenges for the region, with new house completions dropping from 22% of the national total in 1999 to just 11% in 2023, despite the region representing 17.2% of Ireland’s population.
This shortfall poses a serious threat to the region’s ability to accommodate both current and future population growth.
Rural Character and Connectivity Challenges
While 64% of the region’s population continues to live in rural areas - compared to just 36% nationally - this presents a dual challenge. The region’s strong rural identity enriches its cultural and community life but linked to this are also major gaps in infrastructure and digital connectivity, essential for keeping these communities competitive in the modern economy.
“The region’s rural strength can be an engine for growth, but only if we address the infrastructure shortfalls collaboratively,” noted Mulrooney. “Improved transport links, and better access to public services are all vital to unlocking the full potential of rural areas. While the WDC policy team has made recommendations and submissions to the National Development Plan (NDP) and National Planning Framework(NPF) and some strides have been made, the region is lagging in comparison.”
The agency’s regional development initiative, Connected Hubs, has created new opportunities for communities to attract a workforce that spends locally, reinvests time once spent commuting, and brings fresh talent into the region. By enabling professionals to work closer to home, helping to retain local populations while also reducing carbon emissions by €1.6 million annually, this initiative is supporting Ireland’s climate goals while bringing new economic life to rural towns and villages.
Call for Renewed Investment Post-Budget
Looking ahead, the WDC emphasises the need for strategic investment to tackle the region’s most pressing challenges.
Commenting on Budget 2025, Mulrooney, said: “Budget 2025 makes important strides for rural Ireland, with €235 million allocated to the revitalisation of rural communities under Our Rural Future. This investment, including the LEADER Programme and Town and Village Renewal Schemes, is critical for addressing infrastructure and connectivity challenges in the West and Northwest. The €2 billion investment in energy and grid infrastructure is also welcome, and we encourage focused attention on grid upgrades in the West to unlock renewable energy potential.”
He added: “We welcome the renewed focus on supporting indigenous firms and the startup ecosystem, especially in rural areas like the Northwest, where these sectors can drive economic growth. As we mark 25 years of progress, the WDC remains committed to working as a critical partner with the government to ensure these investments lead to tangible improvements in infrastructure, high-value employment, and innovation. Addressing these gaps is not just a regional issue but key to Ireland’s overall economic success.”
Call for Collaborative Investment
As the WDC looks to the future, it emphasises the need for strategic, collaborative investment to maximise the region's potential.
“The next 25 years offer a unique opportunity for the West and Northwest to realise its full potential,” said Allan Mulrooney, CEO of WDC. "By working together - government, private sector, and local communities - we can build on our successes and ensure a thriving, sustainable future for the region."
The WDC is committed to working closely with all stakeholders to address key areas such as:
Enhancing high-value sectors like renewable energy and technology
Improving rural infrastructure and digital connectivity
Fostering innovation and entrepreneurship across the region
“Our report shows that investment in the Western Region isn't just good for local communities - it's essential for Ireland's overall economic balance and success,” Mulrooney concluded.