Capital City: Dublin
	It is %T:%M %A in Dublin

Click to enlarge

Economic trends

Ireland went through a phase of economic reforms & deregulation during the decade of nineties. As a result, its economy, which was dominated by traditional sectors, moved to a modern economy based upon sectors like Information Technology (IT), electronics, and pharmaceuticals. Ireland has been able to stand out as a model in global competitiveness because of its skilled workforce and tax benefits. But in recent years, Ireland has experienced more moderate growth. It started with the global economic slowdown in 2003. The GDP growth rate was 8.7% in 2006, 4.6% in 2007 and is estimated at 3.0% in 2008. Increase in the public spending before the May 2007 elections is likely to substantially bring down the budget surplus, despite strong tax revenue growth. The current-account deficit will rise to 4.8% of GDP by 2007, but begin falling thereafter. The unemployment rate is less than 5% and inflation is under control at around 2.5%.

Main branches of industry

The agriculture sector contributes 3.5% of the GDP. Cereals and vegetables are the main crops, but above all the agriculture production mainly depends on bovine breeding. Fishing sector is important to economy. Ireland is the fourth largest salmon producer in Europe. Ireland exports 60% of its meat production. The economy is characterized by its dominating service industry (60% of GDP); IT and electronics being the main sectors. 6% of the active population works in IT industry. Numerous American multimedia and telecommunication companies have set up their European head office in Ireland, though wage increases over the past five years have significantly exceeded the EU average which has led some of these companies to relocate towards PECOs. Tourism contributes 5% to the GDP.

International trade

The share of foreign trade in country’s GDP is nearly 150%. Its top three export partners are: the U.S.A., United Kingdom and Belgium. Ireland mainly exports organic chemicals, electronic & telecommunication equipment and pharmaceutical products. Its three main import partners are: the United-Kingdom, the U.S.A. and Germany. Products mainly imported into the country are machinery, electronic components, vehicles, and mineral fuels & oils.