Ireland: Economy Overview

Ireland is a small, modern, trade-dependent economy. GDP growth averaged 6% in 1995-2007, but economic activity dropped sharply in 2008 and 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.

Economy Overview

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 2006 than in any other developed world economy. Per capita GDP also surged during Ireland's high-growth years, and in 2007 surpassed that of the United States. The Irish Government has implemented a series of national economic programs designed to curb price and wage inflation, invest in infrastructure, increase labor force skills, and promote foreign investment. 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. Ireland joined in circulating the euro on 1 January 2002 along with 11 other EU nations.

GDP (purchasing power parity):

$188.4 billion (2008 est.)
country comparison to the world: 55
$194.3 billion (2007 est.)
$183.3 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate):

$273.3 billion (2008 est.)

GDP - real growth rate:

-3% (2008 est.)
country comparison to the world: 214
6% (2007 est.)
5.4% (2006 est.)

GDP - per capita (PPP):

$45,300 (2008 est.)
country comparison to the world: 11
$47,300 (2007 est.)
$45,100 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector:

agriculture: 5%
industry: 46%
services: 49% (2008 est.)

Labor force:

2.241 million (2008 est.)
country comparison to the world: 115

Labor force - by occupation:

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

Unemployment rate:

6.1% (2008 est.)
country comparison to the world: 74
4.6% (2007 est.)

Investment (gross fixed):

21.2% of GDP (2008 est.)
country comparison to the world: 95

Budget:

revenues: $92.57 billion
expenditures: $109.9 billion (2008 est.)

Inflation rate (consumer prices):

4.1% (2008 est.)
country comparison to the world: 65
4.9% (2007 est.)

Commercial bank prime lending rate:

NA% (31 December 2008)
country comparison to the world: 125
6.52% (31 December 2007)

Stock of domestic credit:

$501.2 billion (31 December 2008)
country comparison to the world: 21
$545.2 billion (31 December 2007)

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:

5% (2008 est.)
country comparison to the world: 50

Oil - production:

0 bbl/day (2007 est.)
country comparison to the world: 180

Natural gas - production:

438 million cu m (2007 est.)
country comparison to the world: 69

Current account balance:

$-12.32 billion (2007 est.)
country comparison to the world: 171
$-14.12 billion (2007 est.)

Exports:

$119.6 billion (2008 est.)
country comparison to the world: 34
$115.5 billion (2007 est.)

Exports - commodities:

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

Exports - partners:

UK 18.6%, US 18.3%, Belgium 14.7%, Germany 7%, France 5.9%, Spain 4.2% (2008)

Imports:

$80.94 billion (2008 est.)
country comparison to the world: 41
$84.76 billion (2007 est.)

Imports - commodities:

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

Imports - partners:

UK 37.9%, US 11.6%, Germany 8.8%, Netherlands 5.6% (2008)

Debt - external:

$2.312trillion (31 December 2008)
country comparison to the world: 8
$2.263 trillion (31 December 2007)

Stock of direct foreign investment - at home:

$179 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$152.9 billion (2008 est.)
country comparison to the world: 21
$139.6 billion (31 December 2007 est.)

Exchange rates:

euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Source: CIA - The World Factbook