Ireland is the third largest island in Europe. In addition, he is one of the two largest British. The territory is divided between the Republic of Ireland and the United Kingdom. Ireland occupies most of the territory, and Northern Ireland - only a sixth of the area. However, a third of the population of the entire island lives there.
Northern Ireland is characterized by a high level of industrial development, although this part of the world has traditionally been an agricultural province. And the Republic of Ireland is called the "Celtic tiger", which, after being on the verge of bankruptcy, quickly overtook the "Chinese dragon."
Ireland Economy: General
As a result of the crisis of 2008-2009, the entire system of the economy was hit hard. In 2009, GDP in Ireland decreased by 7.1% compared to the previous reporting period. By 2010, it was possible to stabilize economic indicators. As of the third quarter of 2010, unemployment was 13.5%.
In the pre-crisis time, the concept of “Celtic tiger” (similar to Asian tigers) was used to generalize the economy of Ireland. GDP increased by more than 7% annually, which exceeded global standards (3.2%) and Asian countries (4.3%). The characteristics of the Irish economy, which ensured a Celtic economic miracle, experts call EU accession and the euro zone, tax system reform (a radical reduction in rates) and the labor market, investment in telecommunications, information technology, pharmaceuticals and healthcare, financial and international services, e-commerce, low entry barriers, US investments.
Despite this, in the fall of 2010, the country's budget, real estate market and banking sector were hit hard by the effects of the global crisis. The government was forced to cut several thousand jobs, introduce new taxes, lower wages and apply to the IMF for a loan.
National currency
Ireland used the Irish pound as its national currency, but in 1999 it entered the list of eleven EU countries that introduced the euro throughout its territory. It is interesting that all banknotes have a common design, but the coins have a special design. They depict the traditional symbol of the country - the Celtic harp.
Industry and Energy
The leading sectors of the Irish economy at the beginning of the 21st century were pharmaceuticals and the production of medical supplies, information technology, the food industry and mechanical engineering. In terms of total production in the electronics industry, Ireland ranks 19th in the world. This area includes the production of components, software, information communications, telecommunications, computers, semiconductors and so on.
Light industry is represented by medium and small businesses. Silk, linen and wool are traditionally made. Many small companies under the common name unite to enter global markets. A large share is occupied by the food industry. The country produces flour, sugar, dairy and meat products, tobacco products, beer and whiskey.
The economy of Ireland is based on the consumption of oil, peat, coal, natural gas. Energy is represented mainly by thermal stations, which supply up to 95% of electricity. It is in the Republic of Ireland that the world's largest power plants operate, namely Lanesborough, Edenderry, West Offlay, working on peat. Hydroelectric power plants account for 4% of electricity generation.
Mining
In Ireland, silver, copper, lead, zinc, barite are mined, and there are discovered reserves of gold and natural gas. Significant deposits of coal are concentrated in the counties of Carlow and Kipkenny, near Avoca there is a copper deposit, in the central part of the country - lead-zinc. For the needs of the construction field, sand, gravel and stone are mined. The economy of Ireland operates in conditions of low diversity and insufficient amount of natural resources.
Ireland Agriculture
The main agricultural sector is livestock, which accounts for 80% of GDP. Breeding areas for cattle are concentrated near Dublin, in the east and south of the country. The largest manufacturers are combined. In the central and eastern regions of Ireland, crops are grown: wheat, sugar beets, barley, oats, potatoes. Some counties grow only certain plant varieties. The coastal waters are actively fishing. The largest fishing ports are Dublin, Dun Leare, Skerris. In short, in Ireland's economy, agriculture is subsidized.
Banking and Finance
The Central Bank of Ireland ensures the stability of the euro zone, develops and implements a unified monetary policy, manages official reserves and conducts operations with foreign currency. The main European institutions in Ireland are also represented. These are commercial and trading banks, industrial and settlement. The Irish Stock Exchange was founded in 1793. It is one of the oldest exchanges in Europe.
The entire financial system has been hit hard by the 2008-2009 crisis. The domestic real estate market collapsed because developers took up a significant place in the loan portfolio. In 2008, in response to the crisis, state guarantees were issued that covered all debts, bonds and deposits, but the situation only worsened. Capitalization failed, and the government decided to nationalize the bank with a capitalization of less than 2%. After that, two more banks collapsed. Ireland was forced to take out a loan to help the banking system from a special pan-European reserve fund.
Foreign economic relations
The neighboring UK has historically played a leading role in Ireland’s foreign trade, but in the last twenty years there has been a consistent decrease in volumes: from 38% of exports and 49% of imports in 1983 to 18% and 39%, respectively, in 2005. At the same time, the role of the United States is steadily growing. as one of Ireland’s leading trading partners, and the strengthening of trade relations with Europe began after the transition to the euro.
Tourism in Ireland
Tourism is an important part of the economy of the Republic of Ireland. The country is visited annually by more tourists than the local population. The tourism industry employs about 200 thousand people, and annual income is almost 5 billion euros. The country has repeatedly been called the best place to stay, and Cork is recognized as one of the ten best cities in the world. Most tourists come to Ireland from Germany, France, the USA and the UK.
