Ireland

Capital: Dublin

Local time:
It is %T:%M %A in Dublin

GDP growth rate: 2.2% in 2013

FDI stock: 247 097 million USD in 2010

Economic trends

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 started to rise since 2008 and could reach more than 13% today.

Main branches 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).

International trade

Ireland is a very open economy and therefore very dependent on international situations. In 2010, trade represented more than 150% of the GDP. 

After the international economic crisis, the structural trade surplus strongly increased due to the fall of imports combined recently with some resistance in exports. 

The main imports are machinery and equipment, oil and petroleum products, textiles and clothing. The main exports are computers, chemical and pharmaceutical products, live animals and animal products.

Ireland's main trade partners are the European Union and the United States.