Figures published by the Central Statistics Office show that in 2005, Ireland's economy was the second best performing in the EU, measured by gross domestic product per person.
Ireland's GDP per capita was 38% above the EU average, according to Measuring Ireland's Progress 2006, which compares Ireland's performance against other EU countries over the past few years. Only Luxembourg had a higher figure.
But Ireland fell to fifth based on gross national income, which strips out profits from foreign multinationals.
The report also showed that Ireland's competitiveness has deteriorated since 2000, mainly because of higher inflation and a stronger euro.
Ireland has the third lowest unemployment rate in the EU in 2006 at 4.3%, while the employment rate rose from 56.1% in 1997 to 68.1% in 2006, with the rate for women jumping by 14 percentage points.
But the proportion of people defined as being at risk of poverty was 20% in 2005, one of the highest rates in the EU. The effect of pensions and social welfare on reducing the 'risk of poverty' rate was low compared with other countries, according to the report.
