Economic Trends/Outlook in Ireland
The Irish economy was seriously affected by the international financial crisis because of its extensive in-sourcing, its high level of financialization and the importance of real estate in the active economy. It was the first European country to go into recession and it should restore a positive growth in 2011. From -7.6% in 2009, the contraction of GDP was reduced to -0.3% in 2010, due to the slow progress in the exports of chemical and pharmaceutical products.
In the context of a reduction of fiscal revenues and an increase in social costs, the priority of the government remains in restricting expenditures, reorganizing public finance, stabilizing the bank system and improving competitiveness. The objective is to bring the public deficit to 3% of GDP from now until 2014, against 12.8% where it stands now.
The unemployment rate, which was low in 2007, started to rise since 2008 and could reach more than 13% today.
|GDP (billions USD)||222.36||204.26e||212.79e||217.44e||224.30e|
|GDP (Constant Prices, Annual % Change)||-7.6||-1.0e||0.5e||1.9e||2.4e|
|GDP per Capita (USD)||49,863||45,689e||47,751e||48,954e||50,127e|
|General Government Balance (in % of GDP)||-9.6e||-8.0e||-5.9e||-5.7e||-4.8e|
|General Government Gross Debt (in % of GDP)||65.5e||96.1e||114.1e||121.5e||125.8e|
|Inflation Rate (%)||-1.7||-1.6e||0.5e||0.5e||1.4e|
|Unemployment Rate (% of the Labor Force)||11.8||13.6e||14.5e||13.3e||12.8e|
|Current Account (billions USD)||-6.71e||0.85e||-0.19e||-0.10e||-|
|Current Account (in % of GDP)||-2.9e||0.4e||-0.1e||-0.0e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
Agriculture remains a key sector despite its small part of the GNP (3%). The government is trying to consolidate its role in the economy by modernizing it and by expanding the food-processing industries (beef, dairy products, potatoes, barley and wheat).
Ireland’s recent industrial development has been achieved by an intentional policy promoting high-tech companies to export and, in part, by offering attractive packages to investors. This sector contributes to more than one third of the GNP. Textiles, chemical and electronic products have, in particular, obtained high results.
The service sector (approximately two-thirds of the GNP), banking and finance have experienced such a large growth that Dublin counts now with a sizable international financial center and tourism has become a substantial source for foreign exchange revenues (5% the GNP).
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||5.6||25.7||68.1|
|Value Added (in % of GDP)||1.0||31.2||67.8|
|Value Added (Annual % Change)||8.4||-4.6||-7.3|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Mostly free
- World Rank:
- Regional Rank:
Sources of General Economic Information
Department of Enterprise, Trade and Employment
Department of Agriculture, Fisheries and Food
Industrial Development Agency
- Statistical Office
Central Statistics Office
- Central Bank
European Central Bank
Central Bank and Financial Services Authority
- Stock Exchange
Irish Stock Exchange
- Other Useful Resources
- Main Online Newspapers
- Economic Portals
The Economic and Social Research Institute
Any Comments About This Content? Report It to Us.
Find the related Irish companies with Kompass:
US GovTrade Promotion, the United States