Ireland is not a wealthy country when compared with others within the EU and the income generated during the boom has largely been wasted – according to a new report by Davy Research.

Davy’s analysis of income generated and investments undertaken in Ireland between 2000 and 2008 concludes that two thirds of the €255 billion pumped into the economy during the period was spent building houses.

Davy compares Ireland with leading European economies and the conclusions are not flattering.

Despite the huge amount of money generated in Ireland over the period 2000 to 2008, the purchasing power of the average Irish person has not improved greatly over that period and ranks mid-table in EU terms.

The great pity is that too much of the wealth created ended up being invested in what economists, such as Davy, call non-productive assets such as houses.

Instead, the report says a greater proportion of the investment should have been spent on telecommunications infrastructure and other productive assets – which help improve quality of life and generate income.

The one bright note Davy identifies is that Ireland possesses a pool of young, highly-educated talent and has a greater proportion of graduates between the ages of 25 and 34 than any member of the EU – bar Cyprus.