Ireland Economic Overview: Information for Foreign Investors

GDP Growth:

• Ireland has experienced significant GDP growth in recent years.
• Official statistics from the Central Statistics Office (CSO) provide data on annual GDP growth.
• It is important to note that a large amount of this GDP growth, is due to multinational corporations.

Modified Domestic Demand (MDD):

• MDD is an economic indicator that provides a clearer picture of the Irish domestic economy.
• This metric attempts to remove the effects of multinational corporations from the GDP.

Key Sectors:

• Major economic sectors include:
  • Pharmaceuticals.
  • Information and Communication Technology (ICT).
  • Financial services.
  • Manufacturing.
  • Agriculture.
  • The export sector is a large part of the Irish economy.
• Foreign Direct Investment (FDI):
  • Ireland has attracted substantial FDI.
  • FDI inflows are tracked by the Central Bank of Ireland.
  • The low corporate tax rate is a large factor in this.
• Corporate Tax Rate:
  • Ireland's corporate tax rate is 12.5%.
  • Ireland is implementing the OECD's Pillar Two global minimum tax rules.
• Labor Market:
  • Ireland has a relatively high employment rate.
  • The unemployment rate is tracked by the CSO.
• Inflation:
  • Inflation rates are monitored by the Central Bank of Ireland and the CSO.
  • Ireland uses the Euro as its currency, so monetary policy is set by the ECB.
• Currency:
  • Ireland is a member of the Eurozone.
  • The currency is the Euro (EUR).

Trade:

• Ireland is an open economy with significant international trade.
• Major export and import partners are tracked by the CSO.

Government Policies:

• The Irish government implements economic policies to promote growth and development.
• These policies can include:
  • Fiscal policies.
  • Industrial policies.
  • Trade policies.
  • Financial Markets:
  • Ireland has a well-developed financial services sector.
  • Ireland's financial sector is heavily regulated by the central bank of Ireland.

Central Bank of Ireland:

• The Central Bank of Ireland is the central banking institution, and regulates the financial sector.

EU membership:

• Ireland is a member of the European Union, and therefore has access to the EU single market.
• It is important to note that economic data is subject to change.