Disposable income in the west remains just over €3,000 below the national average, and housing completions in the region have dropped from 22% of the national total in 1999 to just 11% in 2023 – despite the region representing 17.2% of Ireland’s population.

Those are among the negative findings of a landmark report unveiled last week by the Western Development Commission to mark its first 25 years – highlighting both the region’s remarkable progress and the critical challenges still facing the west and northwest.

Allan Mulrooney, CEO of the WDC, warned that while we’ve achieved a lot in the last 25 years, the Western and Northwestern Region is at what he called ‘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,” he said.

The report, commissioned by the WDC and prepared with independent economic research and consultancy group Indecon, highlights notable successes, such as job creation, economic growth, and enhanced third-level educational provision.

But it also sheds light on persistent gaps in income, housing, and rural infrastructure.

“The 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,” said Allan Mulrooney.

Gross Value Added – the value that producers have added to the goods and services they have bought – per capita in the West is only 53.37% of the national average (€43,540 vs. €81,573).

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.

The report also highlighted the pivotal role the WDC has played 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.

But it identifies housing 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.

While 64% of the region’s population continues to live in rural areas—compared to just 36% nationally—this presents a dual challenge, it says.

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 Mr 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 and National Planning Framework 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.

Looking ahead, the WDC emphasises the need for strategic investment to tackle the region’s most pressing challenges.

“Budget 2025 makes important strides for rural Ireland, with €235 million allocated to the revitalisation of rural communities under Our Rural Future,” said Mr Mulrooney.

“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.”

The WDC CEO said that they welcomed the renewed focus on supporting indigenous firms and the startup ecosystem.

“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,” he said.

As the WDC looks to the future, Mr Mulrooney emphasised 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,” he said.

“By working together—government, private sector, and local communities—we can build on our successes and ensure a thriving, sustainable future for the region.”

Pictured: Journey…Allan Mulrooney, CEO of the WDC.