An Overview of the Irish Economy

Introduction

Ireland is a small, modern, trade-dependent economy with growth averaging a robust 8% in 1995-2002. Agriculture, once the most important sector, is now dwarfed by industry, which accounts for 45% of GDP, about 80% of exports, and employs 28% of the labor force. Although exports remain the primary engine for Ireland's robust growth, the economy is also benefiting from a rise in consumer spending, construction, and business investment. Over the past decade, the Irish government has implemented a series of national economic programs designed to curb inflation, reduce government spending, increase labor force skills, and promote foreign investment. Ireland joined in launching the euro currency system in January 1999 along with 10 other EU nations. The economy felt the impact of the global economic slowdown in 2001-02, particularly in the high-tech export sector; the growth rate was cut by half.

GDP

• purchasing power parity - $111.3 billion (2002 est.)
• real growth rate: 3.9% (2002 est.)
• per capita: purchasing power - $28,500 (2002 est.)
• composition by sector (2001): (a) agriculture: 4% (b) industry: 36% (c) services: 60%

Population and employment

• Population below poverty line: 10% (1997 est.)
• Household income or consumption by percentage share:
• lowest 10%: 2%
• highest 10%: 27% (1997)
• Distribution of family income - Gini index: 36 (1987)
• Inflation rate (consumer prices): 4.6% (2002 est.)
• Labor force: size 1.8 million (2001)
• by occupation
• services 64%
• industry 28%
• agriculture 8% (2000 est.)
• Unemployment rate: 4.7% (2002 est.)
• Budget revenues: $34 billion, expenditures: $27 billion, including capital expenditures of $NA (2001)

Industries

• food products
• brewing
• textiles
• clothing
• chemicals
• pharmaceuticals
• machinery
• transportation equipment
• glass and crystal
• software

Electricity

• production: 22.285 billion kWh (2000)
• Electricity - production by source:
• fossil fuel: 95%
• hydro: 4%
• other: 1% (2000)
• nuclear: 0%
• Electricity - consumption: 20.823 billion kWh (2000)
• Electricity - exports: 71 million kWh (2000)
• Electricity - imports: 169 million kWh (2000)

Agricultural products

• turnips
• barley
• potatoes
• sugar beets
• wheat
• beef
• dairy products

Exports

• Amount: $85.3 billion f.o.b. (2002 est.)
• commodities: machinery and equipment, computers, chemicals, pharmaceuticals; live animals, animal products
• Partners: EU 62.8% (UK 19.8%, Germany 11.3%, France 7.7%, Netherlands 5.6%, Belgium 4.8%), US 17.1% (2000)

Imports

• Amount: $48.3 billion f.o.b. (2002 est.)
• commodities: data processing equipment, other machinery and equipment, chemicals; petroleum and petroleum products, textiles, clothing
• Import partners: EU 61.4% (UK 33.4%, Germany 5.9%, France 4.5%, Netherlands 3.5%), US 16.2%, Japan 4% (2000)

Debt

• Amount $11 billion (1998) (1998)

Economic aid - donor

• ODA, $283 million (2001)

Currency

• euro (EUR); Irish pound (IEP)
• note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries;
• on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries
• Currency code: EUR; IEP
• Exchange rates: euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); Irish pounds per US dollar - 0.7014 (1998), 0.6588(1997)

Fiscal year: calendar year

Related Materials

• Transportation
• Communication

[Source: http://www.odci.gov/cia/publications/factbook/print/ei.html]

Last modified: 26 May 2003