Economic of Country
The Irish economy is small and highly open. The value of internationally traded goods and services in 2012 was equivalent to 191 per cent of GDP, which amounted to €164 billion for the year. Compared to 2000, this represents an increase in the size of internationally traded goods of 5.3 percent (or 9.7 percentage points see Figure 1)
Services are the largest component of Irish output: in 2012 they accounted for 67 per cent of gross value added at factor cost, while industry and agriculture represented 31 per cent and 2 per cent of gross value added, respectively (Figure 2). Pharmaceutical products, computer and electronic products, and food accounted for 34.5 per cent, 17.2 per cent and 16.5 per cent of total gross industrial output in 2009.

Ireland’s population has grown strongly over the past decade. In 2011 it was 4.6 million, up 17 per cent from 2002. With an average age of 36.1 per cent in 2011, the population is relatively young compared to the rest of the EU.

Figure 1: Size and Openness of the Irish Economy: 2000 – 2012 .

Figure 2: Gross Value Added at Factor Cost by Sector of Origin: 2012 .

industries came in second with 46%. remained at 12% . The unemployment rate. the GDP also declined significantly. which employed 67% of the labor force. services contributed the maximum at 49%. The industries accounted for 27% and agriculture for 6% of the employment.• This is how the economy performed during 2007-2009: (Real growth rate) • • • • 2009: -7. while agriculture contributed 5% • Employment was generated the maximum by the service sector. however. In terms of contribution to the national GDP.5% 2008: -3% 2007: 6% As the rate declined. The following figures show how the GDP fared during 2007-2009: • 2009: $177 billion • 2009: $177 billion • 2007: $197. It has been helped by FDIs and the real estate market.2 billion • From agriculture to being a service-dominated economy. Ireland’s economy has made the transition very effectively.

investment and infrastructure. . CSO and others. prepared for the Council by Forfás.Ireland's Competitiveness Performance Last 3 Year • Ireland's Competitiveness Performance assesses Ireland's international competitiveness in relation to our key competitors across more than forty competitiveness indicators in the areas of costs. • Each year the NCC publishes a report benchmarking Ireland's competitiveness performance. Ireland's Competitiveness Scorecard (previously named Benchmarking Ireland's Performance). The indicators are drawn from data sources such as Forfás. OECD. labor market and skills. the business environment and quality of life and sustainability. using over 125 statistical indicators. Eurostat. productivity and innovation. provides a comprehensive assessment of Ireland's competitiveness performance. It provides an assessment of our strengths and our weakness and will assist policymakers in determining the policies needed to ensure Ireland is a more competitive location in which to do business.

’ .welcomed the news that the IMD World Competitiveness Yearbook 2013 saw Ireland rise 3 places to number 17 in overall competitiveness rankings. Ireland also made significant improvements in areas including government finances. skilled workforce. and high educational levels as key attractiveness factors in Ireland. More than half the executives surveyed for the report identified a competitive tax regime. Ireland ranks: • • • • 3rd for availability of skilled labor 1st for flexibility and adaptability of workforce 1st for attitudes to globalization 1st for investment incentives ‘Ireland’s results in this survey show that our country’s value proposition as a location for FDI continues to improve despite strong competition from other countries and on-going global economic challenges. growth and inflation. business friendly environment.

a diverse range of activity. • The agency said Ireland also ranked first for investment incentives.• IMD said the US had regained the lead due to a revival in its financial sector and the success of its technology companies. attitudes to globalization and for flexibility of the workforce. fiscal discipline and a strong SME sector. • The Swiss-based business school said the success of leading European economies was based on export-oriented manufacturing. . • The IDA welcomed Ireland’s improved position and said that the country had also improved in areas like growth and inflation.

• Ireland now ranks first in the world for value of investment projects and second in the world for inward investment per capita. that are attracting global companies to set up Irish bases.000 people between them and contribute to €110bn in total exports. Where Ireland's FDI exports go: • EU . as reflected in the new IDA info graphic • Key statistics from the IDA • There are now 1. These companies employ 146. That's according to IBM's 2011 Global Location Trends Report.7pc.Emerging Sector for Investment (FDI) • IDA Ireland has created info graphic to showcase some of the key industry sectors such as ICT. life sciences.9pc • Elsewhere .004 overseas companies with Irish bases. digital and social media.25pc • Asia . . plus gaming.10pc • Other European .49pc • North America . pharmacy.

Services. • An advanced telecommunications infrastructure. • Strategic clusters of leading global companies in Life Sciences. and Consumer Brands. Engineering. services. Digital Media. • Irish competitiveness has improved significantly: business costs including energy.Ireland offers investors: • A thriving RD&I sector. private rents. construction and labor have all become more competitive. • Excellent IT skills and infrastructure. ICT. office rents. exploitation and protection of Intellectual Property rights. • An established reputation as a hub for business process improvement across EMEA. . • Strategic location with easy access to the EMEA region. with state-of-the-art optical networks and international connectivity. • A strong legal framework for development. with strong Government support for productive collaboration between industry and academia.

financial and HR skills. We continue to attract shared services operations to serve European and global markets as well as more sophisticated and diverse regional headquarters’ operations from these companies Ireland offers a low-risk.Business Sectors Ireland is one of Europe’s leading locations for Business Services Companies due to high quality IT. quick start-up. knowledge economy to this sector Consumer Products The Irish experience for Consumer Products and Services covers every aspect of business and highlights the diversity of expertise available for EMEA and globally focused multinationals operating internationally from Ireland Over 70 international consumer product companies have recognized Ireland as the ideal location for their activities . We continue to attract shared services operations togs well as more sophisticated and diverse regional headquarters’ operations from these companies Ireland is one of Europe’s leading locations for Business Services Companies due to high quality IT. financial and HR skills. high-performance.

Innovative Government initiatives such as the Digital Hub in Dublin underscore the drive to create an international center of excellence around digital media and technology in Ireland. Our strategic location is a natural advantage for the generation of many renewable energy sources and is backed by a high level of relevant skills and experience. a thriving RD&I environment and supportive government policies. GE Energy & Airtricity developed the world’s first commercial application of offshore wind turbines over 3 MW in size off Ireland’s East coast Entertainment & Media Google and AOL’s decisions to locate overseas operations in Ireland are proof of the dynamic nature of the Entertainment and Media sector in Ireland.Clean Technology Ireland has the ambition and potential to become a major hub for investment in the rapidly developing Clean Technology sector. A worldwide reputation for creativity and communication is expressed in this thriving sector .

They represent 22% of total exports. estimated at €35 billion. university level research and advanced logistics Information & Communications Technologies The ICT Sector in Ireland attracts global investment with 9 of the top 10 US ICT companies operating here. Companies in Ireland are supported by high quality engineering services.Industrial Products & Services Leading providers of industrial products and services have chosen Ireland as a location for sophisticated value added activities within their groups. skill base and value propositions Ireland has one of the highest concentrations of ICT activity and employment in the OECD . There are over 200 IDA supported ICT companies. Activities undertaken include high value manufacturing. international services and intellectual property management. research and development.000 people. The ICT Sector continues to grow in Ireland as companies take advantage of the competitive environment. directly employing approximately 36. supply chain management.

telecommunications and other services providers. Medical Devices and Diagnostics. with many located in Dublin’s International Financial Services Centre. Biotechnology. Life Sciences – Pharmaceuticals Through Foreign Direct Investment since the 1960’s Ireland has grown a globally significant Life Sciences Sector. many world leaders in cloud computing have already positioned themselves to take full advantage of the benefits Ireland has to offer. The IFSC was created by the Irish Government in 1987 to drive the development of the sector. employ 47.Cloud Computing Ireland is showing the world the way in fostering and delivering cloud computing services. Life Science Companies in the areas of Pharmaceutical. taxation.288 people between indigenous and multinational companies in a variety of activities. regulatory. The IFSC now houses many of the world’s leading financial institutions along with a sophisticated support network including accountancy. Ireland has the potential to become a world leader in the cloud computing industry International Financial Services More than 250 Global financial institutions have established operations in Ireland. . Supported by a comprehensive strategic approach from government and IDA Ireland.ICT . legal actuarial.

Earlier Indian company and business in Ireland • Northern Ireland was the first region in Europe to offer 100 per cent broadband coverage and a number of companies from the island had set up shops in India. • He added that the Polaris tie-up was a partnership agreement and companies from India could set up operations in Northern Ireland through a variety of options. Both offer companies pools of well-educated. Education has been the bedrock of Ireland’s economic transformation into a knowledge society able to meet the challenges and grasp the opportunities of a dynamic and globalising world . HCL is reported to have invested close to $16 million in Northern Ireland • Indian technology and biotech companies and higher education institutes are increasingly teaming up with their counterparts in Ireland to develop innovative products and services for world markets. easily motivated and computer literate young people. both India and Ireland value education as a route to growth and greater wealth. HCL. • He also said that the Indian IT company. • Furthermore. had grown from 300 people to about 2000. which started its operations five years ago. he pointed out.

• Initiatives which we are planning will provide additional support to companies to seize the massive business opportunities in what is now one of the world's most dynamic markets.• India is fast becoming a key market for Northern Ireland companies across a range of sectors including IT. until recently. biotechnology and consumer products. . • First source is among a growing number of Indian companies like HCL. Polaris. known for violence. PixTransmission and Tech Mahindra who have chosen to set up offices in the region that was.

• Reduces risk: A business selling to a wide range of foreign markets is less dependent and may be better able to survive an economic downturn. components and capital equipment without meeting barriers to trade such as tariffs and quotas. Irish small to medium enterprises are too dependent on the UK market. Unfortunately.Free Tread Agreement The benefits of free international trade to Ireland • Larger markets: Irish firms have free access to a market of over 350 million people who are high-income earners in the EU. .5 million people in Ireland. This compares favorably to the 3. This larger market allows firms to expand and benefit from economies of scale. • Imports: Firms are allowed to import raw materials. • Economic growth: The fuel behind the Celtic Tiger has been the dramatic growth in Irish exports. The multinationals have taken full advantage of the bigger market.

which can be traded on the international market. which reduce the chance of hostility. we can specialize and produce a surplus. the EFTA States have 26 free trade agreements (covering 36 countries). Currently. . This action threatens free trade.• International cooperation: International trade encourages communication. Ireland has a competitive advantage as a food producer. Ryan air is enjoying international success offering a competitively priced service. understanding and cooperation. • Specialization: Free trade means that Ireland does not have to try to be self-sufficient. • Standards: There is a pressure on domestic firms to meet the standards of international competition and this should translate into value for the customer. • Choice and variety: A wider range of goods and services are available for consumption as a result of free trade and this gives rise to a higher standard of living. Instead. The World Trade Organization was established in 1995 with the aim of reducing or eliminating global barriers to trade. America's recent decision to put a 30 percent tariff on steel imports is against WTO agreements.

PAST Analysis .

which accounts for 46% of the GDP (spitted in 80% of exports and 29% of labor force) now takes the place of the agricultural industry as the leading economic force. Economical environment: The economy of Ireland has been through a transformation the last couple of years and has evolved from an agricultural focused economy to a recent knowledge economy. The mentioned knowledge economy is now mainly based on services and high-tech industries. an development which leads to the conclusion that industry. investment and industry. Ireland is considered the largest exporter of services in the world. The head of state is elected for seven years and can only once be reelected. Furthermore there has been a significant rise in consumer spending habits. People have become used to a coalition of parties to form a government as there has not been a single -party government since 1989. as the system is a parliamentary one. according to research taken.Political environment The Republic of Ireland is considered a stable government. and 7% from 2001-2004. constrained on trade. a 10% from 1995-2000. business investment and last but not least construction. The economy growth averaged. . The current government form is a coalition of three parties.

Social Environment: The official languages of Ireland are Irish and English. Primary. For example changes relating to the legal status of divorce and abortion in Ireland prove that steps are being taken to change policies regarding these matters. Ireland could now be considered mainly progressive in relation to social issues. It is the seventh highest in the world. U. Irelands GDP is said to be the fifth highest according to the Human Development Index. In addition to that most public notes are only in English as is most of the public press.The Gross National Income (GNI) per head averages at $ 41. Ireland is said to make good and thoughtful use of the European founds in contrast to many other countries. Ireland joined the European Union in 1973. which gives the fear of terrorism a new importance.which is definitely favorable for business. according to measurements of the World Bank. citizens.Though it is worth mentioning that the IRA is still present to some point as the Sinn Fein party has its place in the current government. . 140. Secondary and Tertiary level of education are offered freely in Ireland to all E. which is calculated partially on the basis of GDP. the sixth highest in Western Europe and even the third highest among any EU member state. a fact favorable for future business plans in Ireland.

Furthermore Ireland is known for its traditional music scene and can also proudly present successful entertainment exports. Technological Environment: Ireland has 3 international airports. . To sum up. and Aer Lingus is the national airline. such as U2 and The Cranberries among many others. that Ireland became the first country in the world to ban smoking in workplaces. The route between London and Dublin is considered to be the busiest international air route in Europe. especially in the late twentieth century. family oriented but also open structure of society.It may also be important to mention considering further business plans. Ireland seems to have a catholic. Furthermore the excellent infrastructure offers regular ferry services which operate between Great Britain and the Republic of Ireland. The road network is managed by the National Roads Authority or even by local authorities according to the area. In addition to that Ireland's film industry can also be considered flourishing in the last couple of years. The significantly good infrastructure provides railway services (Dublin is the center of the network) and the public transport network is steadily improving.

IBM. the Irish export volume went down to $107. have kept the exports alive through their wide range of products.3 billion. Oracle. from $119. marketing and customer relations. eBay. Although the recession devalued the sterling and forced the government to implement various strategies. such as Apple. Pfizer.Technology is the final piece to this puzzle we have been trying to solve. foreign companies. Google. In 2009. Cadbury-Schweppes. Dell and Intel. Microsoft. agencies must adapt to suit their market. sales and lettings. The main exported commodities were • • • • • • Machinery and equipment Computers Chemicals Pharmaceuticals Live animals Animal products . As we become more and more fond of our devices and technologies. Ireland Trade: Exports Ireland’s trade has been the reason for the nation’s prosperity.8 billion in 2008. Currently I would think technology is actually affecting areas of the property services industry such as management.

and governance indicators. corporate laws. patents data and relevant laws. • Social section on Ireland enables understanding of customer demographics through the income distribution. • Environmental section provides information on environmental policies in Ireland and the performance in terms of important environmental indicators . business set-up procedures and the tax regime. • Economic section on Ireland outlines the economic story of the country to provide a balanced assessment on core macro-economic issues. healthcare and educational scenario in the country. technological laws and policies. key figures in the country. • Legal section on Ireland provides information about the legal structure. rural-urban segmentation and centers of affluence. technological gaps. • Political section on Ireland provides inputs about the political system.Features and Benefits • Understanding gained from the country analysis report on Ireland can be used to plan business investments or market entry apart from a holistic view of the country. • Technological section on Ireland provides strategic inputs on information communications and technology.

the World Bank.000) was offered to the Standards and Trade Development Facility (STDF) for 2011. the World Health Organization.000 (about CHF536. This Programmer helps missions from developing countries enhance their understanding of the multilateral trading system and trade policy in general.5 million.000 (approximately CHF147. Ireland’s overall participation to WTO trust funds has now reached CHF9. the World Organization for Animal Health.000 (about CHF390. With this new contribution. • A second donation of EUR125. .Ireland financial and Technical Roll • Ireland has donated EUR455.000) to the Internship Programmer for the Missions of Selected WTO Members in Geneva and the Standards and Trade Development Facility (STDF). This programmer was set up to help developing countries improve their expertise and their capacity to analyze and implement international standards on food safety and animal and plant health.000) was given to the Internship Programmer for the Missions of Selected WTO Members in Geneva. • A first donation of EUR330. and the Food and Agriculture Organization. The STDF is a joint initiative of the World Trade Organization.

The income that IBRD has generated over the years has allowed it to fund development activities and to ensure its financial strength.00 . which enables it to borrow at low cost and offer client’s good borrowing terms. Established in 1944 as the original institution of the World Bank Group.• The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income countries and creditworthy poorer countries by promoting sustainable development through loans. IBRD is structured like a cooperative that is owned and operated for the benefit of its 188 member countries • IBRD raises most of its funds on the world's financial markets and has become one of the most established borrowers since issuing its first bond in 1947.013. guarantees. risk management products.127. and analytical and advisory services. • Contributions to Financial Intermediary Funds by Ireland As of 03/31/2012 2012 Amount in USD $28.

• 25% Research & Development (R&D) Tax Credit • An Intellectual Property (IP) regime which provides a tax write-off for broadly defined IP acquisitions. • Generous domestic law withholding tax exemptions . • An effective zero tax rate for foreign dividends (12. with access to extensive treaty network and EU Directives. Ireland’s Tax Regime also offers: • an attractive holding company regime. including participation exemption for gains on disposals of most shares.5% tax rate on qualifying foreign dividends.Tax Regime The key features of Ireland’s Tax Regime • Corporate tax rate of 12. with flexible onshore pooling of foreign tax credits). • An EU-approved stable tax regime.5% for active business.

com. • These attributes result in Ireland housing: • 8 of the top 10 global ICT companies • 9 of the top 10 global pharmaceutical companies • 3 of the 5 top games companies • 10 of the top ‘born on the Internet’ companies • 50% of the world’s leading financial services firms • 17 out of 25 global medical device companies • And the story continues. IBM. In recent months Ireland has welcomed further investments from major companies including Amazon. Ancestry. Northern Trust and Fidelity Talent • The IMD WORLD Competitiveness Year book ranked Ireland first in the world for availability of skilled labor and for flexibility and adaptability of workforce. well-educated labor force and scores very highly on labor productivity. technology and innovation in Ireland. Ireland has a young. To date.Technology • Ireland continues to attract the best in scientific and technology investments. . €8 billion has been invested in science. SAP.