Ireland: Economy Overview

Ireland is a small, modern, trade-dependent economy. Ireland joined 11 other EU nations in circulating the euro on 1 January 2002. GDP growth averaged 6% in 1995-2007, but economic activity dropped sharply in 2008-09 as GDP fell by 3% in 2008 and nearly 8% in 2009.

Economy Overview

 Ireland entered into a recession for the first time in more than a decade with the onset of the world financial crisis and subsequent severe slowdown in the property and construction markets. Agriculture, once the most important sector, is now dwarfed by industry and services. Although the export sector, dominated by foreign multinationals, remains a key component of Ireland's economy, construction most recently fueled economic growth along with strong consumer spending and business investment. Property prices rose more rapidly in Ireland in the decade up to 2007 than in any other developed economy. However, average home prices have fallen 50% from the 2007 peak. In 2008 the COWEN government moved to guarantee all bank deposits, recapitalize the banking system, and establish partly-public venture capital funds in response to the country's economic downturn. In 2009, in an effort to stabilize the banking sector, the Irish Government announced the establishment of the National Asset Management Agency (NAMA), which will acquire property and development loans with a book value of more than $100 billion from Irish banks. Faced with a need to bring the budget deficit down under the 3% EMU limit by 2014, the Irish Government introduced the first in a series of draconian budgets in 2009. In addition to across-the-board cuts in spending, the 2009 budget included wage reductions for all public servants.

GDP (purchasing power parity):

$172.5 billion (2009 est.)
country comparison to the world: 57
$186.7 billion (2008 est.)
$193.4 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$222.4 billion (2009 est.)

GDP - real growth rate:

-7.6% (2009 est.)
country comparison to the world: 204
-3.5% (2008 est.)
5.6% (2007 est.)

GDP - per capita (PPP):

$37,700 (2009 est.)
country comparison to the world: 27
$41,300 (2008 est.)
$43,800 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 5%
industry: 46%
services: 49% (2002 est.)

Labor force:

2.187 million (2009 est.)
country comparison to the world: 116

Labor force - by occupation:

agriculture: 6%
industry: 27%
services: 67% (2006 est.)

Unemployment rate:

11.8% (2009 est.)
country comparison to the world: 133
6.3% (2008 est.)

Investment (gross fixed):

15.5% of GDP (2009 est.)
country comparison to the world: 130

Budget:

revenues: $80.57 billion
expenditures: $113.1 billion (2009 est.)

Inflation rate (consumer prices):

-4.5% (2009 est.)
country comparison to the world: 2
4.1% (2008 est.)

Commercial bank prime lending rate:

4.32% (31 December 2009 est.)
country comparison to the world: 135
6.76% (31 December 2008 est.)

Stock of domestic credit:

$745.7 billion (31 December 2009 est.)
country comparison to the world: 19
$738.5 billion (31 December 2008 est.)

Agriculture - products:

turnips, barley, potatoes, sugar beets, wheat; beef, dairy products

Industries:

steel, lead, zinc, silver, aluminum, barite, and gypsum mining processing; food products, brewing, textiles, clothing; chemicals, pharmaceuticals; machinery, rail transportation equipment; glass and crystal; software, tourism

Industrial production growth rate:

-7.8% (2007 est.)
country comparison to the world: 132

Oil - production:

0 bbl/day (2008 est.)
country comparison to the world: 172

Natural gas - production:

392 million cu m (2009 est.)
country comparison to the world: 69

Current account balance:

$-6.762 billion (2009 est.)
country comparison to the world: 171
$-14.95 billion (2008 est.)

Exports:

$107.3 billion (2009 est.)
country comparison to the world: 34
$119.2 billion (2008 est.)

Exports - commodities:

machinery and equipment, computers, chemicals, pharmaceuticals; live animals, animal products

Exports - partners:

US 20.52%, Belgium 17.7%, UK 16.31%, Germany 5.66%, France 5.56%, Spain 4.19% (2009)

Imports:

$62.22 billion (2009 est.)
country comparison to the world: 40
$84.16 billion (2008 est.)

Imports - commodities:

data processing equipment, other machinery and equipment, chemicals, petroleum and petroleum products, textiles, clothing

Imports - partners:

UK 35.28%, US 16.87%, Germany 6.76%, Netherlands 5.86%, France 4.76% (2009)

Debt - external:

$2.287 trillion (30 September 2009)
country comparison to the world: 7
$2.356 trillion (31 December 2008)

Stock of direct foreign investment - at home:

Stock of direct foreign investment - abroad:

$180.9 billion (31 December 2009 est.)
country comparison to the world: 20
$156.7 billion (31 December 2008 est.)

Exchange rates:

Source: CIA - The World Factbook