Ireland Overview

During the nineties, Ireland moved from an economy dominated by traditional sectors to a modern economy based upon IT, electronics and chemicals. Ireland has been able to stand out as a world competitiveness model. Actually, the relatively low labour costs, skilled workforce and worthwhile taxation advantages have generated huge numerous foreign investments, especially in computing and high technologies sectors and have led to very high GDP growth rates (10.9% in 1999 and 11.5% in 2000) but over the last few years, growth has been sharply affected by new technology sector's crisis. GDP growth was 4.9% in 2004, 5% in 2005. The IMF forecasts a 4.9% growth in 2006. Unemployment, estimated at 4.3% in 2005, shows modest levels. Even though it follows a slow upward movement, it remains far below European average.

The agriculture sector provides 3.5% of the GDP. Cereals and vegetables are the main crops, but above all, agriculture production relies on bovine breeding. Fishing also employs 25,000 persons and the country recently became the fourth largest salmon producer in Europe. Ireland exports 60% of its meat production. The economy is characterized by its dominating service industry (GDP 60%), computing and electronics being the main sectors. 6% of the active population works in computing industry. Numerous American multimedia and telecommunication multinational companies set up their European head office in Ireland. But the progressive increase in workforce costs and the less favourable fiscal policy has led some of these companies to relocate towards PECOs. Chemistry and pharmacy are also two strongly developed sectors. Tourism provides 5% of the GDP.

Ireland's three main export parners are the United States, the United Kingdom and Belgium. Ireland mainly exports chemical products, electronic equipment and telecommunication products. Its three main import partners are the United-Kingdom, the United-States and Germany. It mainly imports machines, electronic components and capital goods.