Economy of Ireland - 4021 Words

Economy of Ireland I. Introduction The economy of Ireland has transformed in recent years from an agricultural focus to a modern knowledge economy, focusing on services and high-tech industries and dependent on trade, industry and investment. Since the mid 1990s, Ireland has experienced consistent growth rates of up to 10% per annum. This has been attributed to years of strong government planning through the implementation of five-year National Development Plans. These plans provided for large-scale investment in infrastructural projects and the focused development of Ireland as a base for multinational export-oriented companies. Ireland was transformed from one of the poorest countries in Western Europe to one of the wealthiest.†¦show more content†¦This attitude suited the developers down to the ground. Developers and builders launched into buying land and building huge housing estates (with money they didn’t have) and consumers, us, launched into buying these houses (with money we didn’t have ). This suited the banks down to the ground, lending more and more money expecting massive returns. The problem is someone at some stage forgot to tell them to stop building. Where were all the people going to come from to live in these houses? I don’t think unfortunately the full effect of the downturn has yet been felt by the industry as a significant number of infrastructure projects have yet to be completed. According to the CIC (Construction Industry Council) at its peak, construction represented 25% of GNP equating to â‚ ¬38.4bn. This level was unsustainable. IV. The Banking Sector The Irish banking sector has led a relatively fruitful life, especially over the last fifteen years or so and seemed that it would continue long into the future. The banks were joined at the hip with the construction sector and were making huge investments, albeit with shareholders money. The banks got into trouble because they got caught up in the mass psychology of an unprecedented property bubble – the steepest and longest of the several national property bubbles of the late 1990s andShow MoreRelatedThe Economy of Ireland1572 Words   |  6 PagesEconomics of Ireland The republic of Ireland lies to the East of England and Wales with an estimated population of about 4.5 million. Its well infrastructure in terms of communication and ICT, stable legal system, low corporate tax and other incentives have been put in place through the Industrial development Agency (IDA) have been attracting foreign investments. Ireland has most of the worlds best financial firms and a young highly skilled and available labour force that can be utilized by theRead MoreEssay On Ireland Economy703 Words   |  3 PagesIreland economy is recovering, but problems remain The Irish economy has gotten back on its feet, and its main task is to keep its stance solid by completing the recovery and spreading its fruits among the population. There’s already an astounding growth rate of 7.8 percent. In the past couple years the growth rate upgraded by the Irish Central Statistics Office to 26.3 percent. 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Since the early years of the twenty-first century, Ireland has attracted billions of dollars of investment from its economicRead MoreEssay about The Great Potato Famine1740 Words   |  7 Pagespotato crops throughout various parts of Europe. With the spread of this disease, it soon targeted Ireland consuming the major crop of potatoes. The famine began by this mysterious disease that hit many parts of Europe during 1845. T his disease known as the blight was caused by a fungus known ‘phytophthora infestans’. Prior to the blight, two main diseases known as ‘curl’ and ‘dry rot’ attacked Ireland but were not as destructive (Kinealy 33). The blight was known to be originated from South AmericaRead MoreEntrepreneurial Activities1060 Words   |  5 Pagesand key factors to the growth of the economy in Northern Ireland. Developing levels of risk taking, initiative and creativity are important in supporting this economic growth. Many entrepreneurial businesses that have been set up in Northern Ireland have been successful, leading to a growth in the economy. The Barclays Eagle Labs Belfast scheme at Ormeau Baths (Eagle Labs) states that â€Å"The Barclays Eagle Lab business incubator† was set up in Northern Ireland in June 2017 to give the start-up andRead MoreEconomic Assessment : Gdp Size And Growth946 Words   |  4 Pagesfrom $46,425 to $49,360 (Ireland GDP | 1960-2015, 2015). Despite overall growth, both GDP and per capita GDP experienced low growth from 2011-2013, and even negative growth in 2012. This is explained by the tight fiscal policy maintained by Ireland’s government during this time. In addition to GDP growth, an interesting indicator of Ireland’s dependence on trade is its exports as a percentage of GDP. Total exports accumulate to 107.8% of Ireland’s GDP in 2014 (Ireland GDP FOrecast, 2015). 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In January 1973, Ireland became one of the member of the European Union, and this is when the country took their first step to its development (EU Member Countries). Consisting of 28 member states in total, the purpose of establishing European Union