Ireland Country Guide

Ireland sits to the west of Great Britain, separated by the Irish Sea, and accounts for five sixths of the island with Northern Ireland which is part of the UK.

Ireland is bounded to the north and west by the Atlantic Ocean and to the northeast by the North Channel. To the east coast is the Irish Sea which reconnects to the ocean via the southwest with St George's Channel and the Celtic Sea. The west coast is more rugged than that of the east, with many islands, peninsulas, headlands and bays.
Irelands population was 4.2million (census 2006) with nearly a third of the population living in Dublin. Other major cities include Cork, Galway and Limerick.

Did you know?

• The Irish Houses of Parliament building, now the Bank of Ireland at College Green, Dublin, was the first purpose-built parliament in the world
• The shamrock is an internationally registered trademark of the Government of Ireland
• The value of two way trade between the UK and Ireland in 2009 was the same as our two way trade with China (over £27 billion).
• The Dell manufacturing plant in Raheen, Limerick produces 30,000—60,000 personal computers per day and contributes 5.8% of Irish GDP.
• With a top rate of 12.5%,Ireland has the third lowest corporate tax rate in the world
• Arthur Guinness had such faith in his brewing business when he started back in 1759 that he took a 9,000-year lease on St James’s Gate Brewery in Dublin at £45 per year

Economic Overview

For many years Ireland had a struggling economy. However, the emergence of the ‘Celtic Tiger’ in mid-1990s saw Irish GDP more than double, reversing the trends of high unemployment and mass emigration. A key driver of this was low corporate tax rates which attracted significant foreign direct investment, a stable relationship between employers and unions (Social Partnership) and a highly educated workforce. The EU Single Market also helped Ireland to move to a more open and free-market based economy.

Between 2003 and early 2007 the Irish economy continued to expand at a steady 3-6% per annum. The drivers of the expansion were primarily construction and consumer spending. Construction in particular experienced phenomenal growth in the Tiger years with house prices in parts of Dublin regularly seeing annual increases of around 25%. The influx of migrant workers from the EU accession states helped provide a ready workforce for the construction sector and increased demand for domestic housing.  

However, in 2008, with the onset of the financial crisis the Irish economy began to experience a slowdown. The near collapse of the property market put pressure on both the Irish banking system and the government finances. Ireland officially entered recession at the mid-2008 point.

The Government response to the economic crisis has been three-fold: attempting to repair the banking system via recapitalising and restructuring through the National Asset Management Agency; tackling unemployment; and restoring public finances. The Government made significant spending cuts in Budget 2009 and Budget 2010 delivered further cuts to public sector pay, social welfare and capital expenditure.
On 24 November 2010, the Irish Government published a four year plan, aimed at correcting budgetary imbalances.  It set out a range of further expenditure cuts totalling 10 billion euros and measures aimed at raising an additional 5 billion euros over four years. The budget strategy set as a target the reduction of Ireland’s budget deficit from 11.7% to below 3% by 2014.
On 28 November, the Irish Government announced that it had agreed in principle with EU partners and the IMF to the provision of 85 billion euros of financial support to Ireland through the European Financial Stability Fund (EFSF) and the European Financial Stability Mechanism; bilateral loans from the UK, Sweden and Denmark; and the International Monetary Fund's (IMF) Extended Fund Facility (EFF). This provision of funds would be extended to Ireland on the basis of certain conditions.

Economic Data 

• Nominal GDP (2009): $222.7 billion. 
• Real GDP growth (2009): -7.6%. 
• Nominal GDP per capita (2009): $49,935. 
• Natural resources: Zinc, lead, natural gas, barite, copper, gypsum, limestone, dolomite, peat. 
  Agriculture (2% of GDP): Products--cattle, meat, and dairy products; barley; hay; silage; wheat. 
  Industry (27% of GDP): Types--food processing, beverages, engineering, computer equipment, textiles and clothing, chemicals, pharmaceuticals, construction.
• Trade (2009, Ireland Central Statistics Office data): Exports--$116.5 billion (excluding services): machinery, transport equipment, chemicals, food, live animals, manufactured materials, beverages. Imports--$62.5 billion (excluding services): grains, petroleum products, machinery, transport equipment, chemicals, textile yarns. Major suppliers--Great Britain and Northern Ireland 30%, U.S. 18%, France 7%, Germany 5%, China 6%, Japan 2%; rest of the world (including other EU member states) 32%.