The Republic of Ireland is renowned for great literature, breathtaking scenery and the easygoing charm of its people.
But ask the man on the street about lucrative economies and Ireland would probably be an afterthought at best.
Once characterised by low growth, high unemployment and a stagnating population, Ireland was transformed into a hi-tech ‘Celtic Tiger’ which attracted huge inward investment.
Over 1,000 overseas companies use Ireland as their European base, accounting for one quarter of GDP and 130,000 people directly
Overseas companies have been lured by a pro-business climate, where corporate tax is set at only 12.5% – almost a third of the UK level.
The Irish economic boom was driven by, and lured, an increasing number of foreign companies. UK retail has a strong and growing presence – Tesco, Boots and Marks and Spencer being three notable examples.
Unfortunately, as with the rest of the world, the Irish hit the buffers after the global downturn. Like the UK, it's now labouring under a huge deficit.
Over 1,000 overseas companies use Ireland as their European base, accounting for one quarter of GDP and 130,000 people directly. UK companies benefit from mutual EU membership, which also negates visa problems.
Many leaders in high-technology areas such as e-Business, engineering, information communications technologies, pharmaceuticals and medical technologies base their European operations in Ireland – IT giants Google, Apple, Intel and Microsoft to name four.
Nine of the world’s top 10 pharmaceutical companies also operate in Ireland. Foreign business accounts for one quarter of GDP and 130,000 people directly.
Perceptions of the ‘Emerald Isle’ as a largely agricultural nation can be easily dispelled by statistics. Its economy has been one of the fastest growing in the developed world since its metamorphosis accelerated dramatically in the 90s.
It posted 6.0% real GDP growth in 2005 – more than twice that of the UK, 2.4% more than the US, and four times as much as Japan.
Agriculture and traditional manufacturing have given way to a large service sector and a buoyant hi-tech industry. By 2004 the service sector accounted for two-thirds of the economy, industry for 28% and agriculture for only 6%.
Export-led and with a balance of payments surplus, Ireland was ranked 10th in the 2005 IMD World Competitiveness yearbook for exports as a percentage of GDP.
