Economic trends
The Irish economy was seriously affected by the global financial crisis of 2008/2009 due to its high degree of internationalization, its high degree of financialization and the importance of real estate in economic activity. The first European country to enter recession (-7.6% in 2009), Ireland's economy stabilized in 2011, experiencing growth of around 1%, boosted by the resumption of exports. However, the country remains vulnerable, 40% of its exports going to eurozone currently experiencing crisis. Irish growth is expected at best to remain around 1%, but more likely to contract in 2012.
The priority of the Irish government is to implement the program adopted in December 2010 as part of the rescue plan signed with the IMF and the EU. Progress was made in 2011 with the adoption of an unprecedented banking restructuring plan and a reduction of the deficit which exceeded the objectives of the program. Measures to enhance competitiveness and sustain growth and job creation were also adopted. However, the country still faces many challenges: domestic demand remains sluggish, unemployment is high and the country's trading partners are having difficulties as well. Authorities continue to be committed to fiscal consolidation, to the recovery of outstanding payments, and to supporting the unemployed's return to jobs.
The unemployment rate, which started to rise in 2008 and has reached almost 14% today, seems to be showing a slightly downwards tendency.
Main branches of industry
Agriculture remains a key sector despite its small part of the GNP (3%). 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 an intentional policy promoting high-tech companies to export and, in part, by offering attractive packages to investors. This sector contributes to more than one third of the GNP. Textiles, chemical and electronic products have, in particular, obtained high results.
The service sector (approximately two-thirds of the GNP), banking and finance have experienced such a large growth that Dublin counts now with a sizable international financial center and tourism has become a substantial source for foreign exchange revenues (5% the GNP).
International trade
Ireland is a very open economy and therefore very dependent on the international situation. In 2008-10, trade represented more than 170% of the GDP.
After the international economic crisis, the structural trade surplus seriously deteriorated due to the fall of imports combined recently with some resistance in exports.
The main imports are machinery and equipment, oil and petroleum products, textiles and clothing. The 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.
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Last updates: May 2012
