Ireland

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The Irish economy was seriously affected by the international financial crisis because of its extensive in-sourcing, its high degree of financialization and the importance of real estate in the economy. It was the first European country to go into recession. The public deficit reached 12% in 2009. The unemployment level, which was low in 2007, started to raise as early as 2008, to reach 12% today.

The Irish Government has implemented a series of national economic plans designed to control prices and inflation through salaries, invest in infrastructures, improve labor force skills, and promote foreign investment. Even though the export sector is dominated by foreign multinationals, it remains a key element of the Irish economy.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	222.61	261.25	273.33e	217.76e	208.31
GDP (constant prices, annual % change)	5.7	6.0	-2.3	-8.0	-3.0e
GDP per capita (USD)	52,505	60,209	61,810e	49,096e	46,826
General government balance (in % of GDP)	2.9	0.2	-6.4	-14.2	-17.2e
Inflation rate (%)	2.7	2.9	3.1e	-0.6	1.0e
Unemployment rate (% of the labor force)	4.4	4.5	6.1	12.0	13.0
Current Account (billions USD)	-7.92	-14.12	-12.33	-5.95e	-3.75e
Current Account (in % of GDP)	-3.6	-5.4	-4.5	-2.7	-1.8e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

Agriculture remains a key sector accounting for around 3% of the GNP. 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 a deliberate policy of promoting export market high-tech companies, partly by offering attractive packages to investors. The sector contributes more than a third of the GNP. Textiles, chemical and electronic products have performed particularly well.
The service sector (approximately two-thirds of the GDP), banking and finance have grown to the extent that Dublin now has a sizable international financial center, and tourism has become a substantial foreign exchange earner (5% the GDP).

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	5.9	27.8	65.6
Value added (in % of GDP)	1.7	35.1	63.2
Value added (annual % change)	1.1	4.7	6.7

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Euro (EUR) - Average annual exchange rate for 1 USD	0.81	0.80	0.80	0.73	0.68

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 82.2/100
Position:: free
World Rank:: 4 out of 179
Regional Rank:: 1 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Ireland is a very open economy and therefore very dependent on international situations. Until 2008, it showed a largely surplus trade balance. However, due to the international crisis, the country is showing a deficit trade balance in 2009. Main imports are machinery and equipment, oil and petroleum products, textiles and clothing. 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.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	51,709	61,102	67,730	72,779	84,226
Exports of goods (millions USD)	88,590	100,116	102,825	104,667	115,517
Imports of services (millions USD)	54,596	65,384	71,437	78,528	94,472
Exports of services (millions USD)	42,061	52,718	59,920	69,191	88,994
Imports of goods and services (annual % change)	-1.6	8.5	7.7	4.4	-
Exports of goods and services (annual % change)	0.6	7.3	5.2	4.4	-
Imports of goods and services (in % of GDP)	67.7	69.0	69.5	69.3	-
Exports of goods and services (in % of GDP)	83.9	84.0	81.8	80.0	-
Trade Balance (millions USD)	36,882	39,014	35,096	31,888	31,292
Trade Balance (including service) (millions USD)	24,346	26,348	23,579	22,550	25,814
Foreign trade (in % of GDP)	151.6	153.0	151.3	149.3	-

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
United States	19.3%
United Kingdom	18.4%
Belgium	14.1%
Germany	7.1%
France	5.8%
Spain	4.2%
Netherlands	3.5%
Italy	3.5%
Switzerland	3.0%
Japan	2.0%
China	1.9%
Malaysia	1.2%
Sweden	1.0%
Poland	0.9%
Australia	0.9%
Hong Kong	0.8%
Singapore	0.6%
Mexico	0.6%
Denmark	0.6%
Norway	0.6%
See more countries	35.3%

Main suppliers (% of imports)	2008
United Kingdom	33.6%
United States	11.7%
Germany	8.1%
China	6.8%
Netherlands	5.0%
France	4.0%
Italy	2.3%
Belgium	2.3%
Norway	2.2%
Japan	2.0%
Denmark	1.8%
Spain	1.6%
Singapore	1.3%
Switzerland	0.9%
South Korea	0.9%
Sweden	0.9%
Poland	0.8%
Turkey	0.7%
Ireland	0.7%
Hong Kong	0.6%
See more countries	34.8%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Organic chemicalsOrganic chemicals	22.2%
Pharmaceutical productsPharmaceutical products	17.8%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.6%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.9%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	7.0%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	6.3%
Miscellaneous chemical productsMiscellaneous chemical products	3.6%
Meat and edible meat offalMeat and edible meat offal	2.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.7%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.3%
Plastics and articles thereofPlastics and articles thereof	1.0%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	1.0%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.8%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.6%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.6%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.5%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.3%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.3%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.3%
Live animalsLive animals	0.3%
Articles of iron or steelArticles of iron or steel	0.3%
Iron and steelIron and steel	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Ores, slag and ashOres, slag and ash	0.2%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.2%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.1%
Glass and glasswareGlass and glassware	0.1%
Aluminium and articles thereofAluminium and articles thereof	0.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
Sugars and sugar confectionerySugars and sugar confectionery	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
See more products	30.6%

Main imports (% of imports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	17.2%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	11.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.5%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	5.9%
Pharmaceutical productsPharmaceutical products	4.2%
Organic chemicalsOrganic chemicals	3.7%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	3.5%
Plastics and articles thereofPlastics and articles thereof	3.1%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.7%
Articles of iron or steelArticles of iron or steel	1.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.4%
Iron and steelIron and steel	1.4%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.3%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.1%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
FertilizersFertilizers	0.8%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.8%
Meat and edible meat offalMeat and edible meat offal	0.8%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.7%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.7%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Rubber and articles thereofRubber and articles thereof	0.6%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.5%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.5%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Live animalsLive animals	0.4%
Glass and glasswareGlass and glassware	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.3%
CerealsCereals	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.3%
Ceramic productsCeramic products	0.3%
Copper and articles thereofCopper and articles thereof	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Ores, slag and ashOres, slag and ash	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.2%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Lead and articles thereofLead and articles thereof	0.1%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
See more products	52.7%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: 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
Search Engines: Yahoo!
Browse Ireland
Ireland's Portal
Nice One
Google
Economic portals: The Economic and Social Research Institute

Political outline

Executive Power: President, chief of state and Prime Minister (Taoiseach), head of government.
Legislative Power: Bicameral national Parliament (Oireachtas): House of Representatives (Dail) and Senate (Seanad).
Main political parties: - Fianna Fail: represents the tradition that rejected the treaty because the present six counties of Northern Ireland were excluded from the outset.
- Fine Gael: Fine Gael represents the tradition that accepted the treaty as a stepping-stone to an eventual republic of the whole island.
- Others: Labor, Progressive Democrats, Green Party, Sinn Fein.
Current political leaders: President: Mary McAleese, since November 1997, reelected in October 2004 (Fianna Fail)
Prime Minister: Brian COWEN (since 7 May 2008)
Next election dates: Presidential elections: October 2011
Parliamentary: May 2012

Indicator of freedom of the press

World Rank:: 6/173
Evolution:: 3 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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