Country Market Attractiveness: Ireland The “Celtic Tiger”Essay Preview: Country Market Attractiveness: Ireland The “Celtic Tiger”Report this essayCOUNTRY MARKET ATTRACTIVENESS ANALYSISIRELAND:“The Celtic Tiger”1. Table of Contents2. General Description of Ireland & its EconomyWith a population just less than 6 million Ireland isnt big in size, but in the past 5 years it has quickly placed itself on the global radar in a huge way. It was only a few decades back that Ireland was considered one of Europes poorest countries and not even a thought in economists or investors minds. From 1990-2002 Ireland went through a rapid economic growth which laid the foundation for the countrys new economic facade. Many credit this dramatic turnaround on low corporate taxation, some say it was the higher education the country provided through its skilled workforce, others say it was just the luck of the Irish. However, what is agreed upon is that Irelands economic boom was extraordinary and unexpected. Its dramatic turnaround and new attractiveness to the European Union and World had economists dubbing the new look Ireland “The Celtic Tiger.”
The 1990s was a great time for the Irish economy as new reforms & deregulation came to fruition. Irelands economy had been growing rapidly for the past decade thanks to European Union directives that favor EU nations with small economies. The economy of Ireland has transformed in recent years from an agricultural focus to one dependent on trade. These new sectors were supported by an untapped skilled workforce and tax benefits which benefited businesses. In fact, these emerging sectors saw the Irish Gross Domestic Product or GDP accomplish double digit growth for the years 1999 and 2000. Then in 2003, the economy slowed down, the Celtic Tiger was tamed but Ireland still remains stronger than other EU member states.
The GDP of the Irish economy in 2001-02: €4,739 (in euros) GDP in 2002: €4,912 (in euros) 2009: €5,086 (in dollars) The GDP of the Irish economy in 2008-09: €846 (in euros) The GDP of the Irish economy in 2007-08: €908 (in dollars) Ireland enjoyed an expansion in its market share for 2005-06 as its market share remained stable during a slump that saw Ireland’s domestic economy grow by less than 0.5 per cent, thanks to government loans under the Fianna Fáil Coalition government. The Irish Government’s reforms had helped to slow the pace of growth. Meanwhile, Ireland’s public debt dropped, rising to around 20 per cent of GDP in the last two quarters. During this time the national debt, which was once valued at about €250 billion, grew at a 1.5 per cent annual increase compared to 2005-06. The net deficit grew, from around 7 per cent of GDP in 2011-12 to 12 per cent in 2012-13. The rate of deficit growth in Ireland continued to rise, with a €10-billion increase in financial crisis-hit Irish debt in 2015-16 to €31 billion. Ireland’s economy grew at its own pace during the recession of 2008-09, but by 2006-7 the balance was not as big as it used to be. In 2013-14 an adjustment (a measure whereby the proportion of the net deficit increasing in the year ahead increases as it does the year before) was in full effect, leaving the Irish economy at a 3.5 per cent annual surplus. There had also been a 6.6 per cent increase in GDP growth in the past 17 years. The GDP of the Irish economy in 2011-12: €5,854 (in euros) GDP in 2012-13: €5,855 (in dollars) The Gross Domestic Product of Ireland’s economy increased by 0.2 per cent (in January 1997, as reported in National Employment Index 2012-13), to €9,787 (in euros) GDP growth in 2013-14: €9,827 (in euros) A new government stimulus has taken the Irish economy to another level. In the three years of the first stimulus, Ireland experienced a significant reduction in public debt, which totaled $3 billion (in dollars) in 2009-10. In 2011, the Irish Government signed a 5.0 per cent policy change which allowed for tax cut for the lowest earners with an increase in the tax credit. However, in December, the Irish Government approved a revised tax cut plan and introduced an estimated $8 billion (€10 billion) additional tax cut for households to achieve increased tax revenue. Between April and June 2010, Ireland’s Gross Domestic Product rose by 0.3 per cent, or €5.7 billion (€8.
The GDP of the Irish economy in 2001-02: €4,739 (in euros) GDP in 2002: €4,912 (in euros) 2009: €5,086 (in dollars) The GDP of the Irish economy in 2008-09: €846 (in euros) The GDP of the Irish economy in 2007-08: €908 (in dollars) Ireland enjoyed an expansion in its market share for 2005-06 as its market share remained stable during a slump that saw Ireland’s domestic economy grow by less than 0.5 per cent, thanks to government loans under the Fianna Fáil Coalition government. The Irish Government’s reforms had helped to slow the pace of growth. Meanwhile, Ireland’s public debt dropped, rising to around 20 per cent of GDP in the last two quarters. During this time the national debt, which was once valued at about €250 billion, grew at a 1.5 per cent annual increase compared to 2005-06. The net deficit grew, from around 7 per cent of GDP in 2011-12 to 12 per cent in 2012-13. The rate of deficit growth in Ireland continued to rise, with a €10-billion increase in financial crisis-hit Irish debt in 2015-16 to €31 billion. Ireland’s economy grew at its own pace during the recession of 2008-09, but by 2006-7 the balance was not as big as it used to be. In 2013-14 an adjustment (a measure whereby the proportion of the net deficit increasing in the year ahead increases as it does the year before) was in full effect, leaving the Irish economy at a 3.5 per cent annual surplus. There had also been a 6.6 per cent increase in GDP growth in the past 17 years. The GDP of the Irish economy in 2011-12: €5,854 (in euros) GDP in 2012-13: €5,855 (in dollars) The Gross Domestic Product of Ireland’s economy increased by 0.2 per cent (in January 1997, as reported in National Employment Index 2012-13), to €9,787 (in euros) GDP growth in 2013-14: €9,827 (in euros) A new government stimulus has taken the Irish economy to another level. In the three years of the first stimulus, Ireland experienced a significant reduction in public debt, which totaled $3 billion (in dollars) in 2009-10. In 2011, the Irish Government signed a 5.0 per cent policy change which allowed for tax cut for the lowest earners with an increase in the tax credit. However, in December, the Irish Government approved a revised tax cut plan and introduced an estimated $8 billion (€10 billion) additional tax cut for households to achieve increased tax revenue. Between April and June 2010, Ireland’s Gross Domestic Product rose by 0.3 per cent, or €5.7 billion (€8.
The GDP of the Irish economy in 2001-02: €4,739 (in euros) GDP in 2002: €4,912 (in euros) 2009: €5,086 (in dollars) The GDP of the Irish economy in 2008-09: €846 (in euros) The GDP of the Irish economy in 2007-08: €908 (in dollars) Ireland enjoyed an expansion in its market share for 2005-06 as its market share remained stable during a slump that saw Ireland’s domestic economy grow by less than 0.5 per cent, thanks to government loans under the Fianna Fáil Coalition government. The Irish Government’s reforms had helped to slow the pace of growth. Meanwhile, Ireland’s public debt dropped, rising to around 20 per cent of GDP in the last two quarters. During this time the national debt, which was once valued at about €250 billion, grew at a 1.5 per cent annual increase compared to 2005-06. The net deficit grew, from around 7 per cent of GDP in 2011-12 to 12 per cent in 2012-13. The rate of deficit growth in Ireland continued to rise, with a €10-billion increase in financial crisis-hit Irish debt in 2015-16 to €31 billion. Ireland’s economy grew at its own pace during the recession of 2008-09, but by 2006-7 the balance was not as big as it used to be. In 2013-14 an adjustment (a measure whereby the proportion of the net deficit increasing in the year ahead increases as it does the year before) was in full effect, leaving the Irish economy at a 3.5 per cent annual surplus. There had also been a 6.6 per cent increase in GDP growth in the past 17 years. The GDP of the Irish economy in 2011-12: €5,854 (in euros) GDP in 2012-13: €5,855 (in dollars) The Gross Domestic Product of Ireland’s economy increased by 0.2 per cent (in January 1997, as reported in National Employment Index 2012-13), to €9,787 (in euros) GDP growth in 2013-14: €9,827 (in euros) A new government stimulus has taken the Irish economy to another level. In the three years of the first stimulus, Ireland experienced a significant reduction in public debt, which totaled $3 billion (in dollars) in 2009-10. In 2011, the Irish Government signed a 5.0 per cent policy change which allowed for tax cut for the lowest earners with an increase in the tax credit. However, in December, the Irish Government approved a revised tax cut plan and introduced an estimated $8 billion (€10 billion) additional tax cut for households to achieve increased tax revenue. Between April and June 2010, Ireland’s Gross Domestic Product rose by 0.3 per cent, or €5.7 billion (€8.
3. International/Trade RelationshipsIrelands new look and new economy has developed itself into a strong international trade partner. To date, the top three export partners include the U.S.A., United Kingdom and Belgium and its three main import partners are the United-Kingdom, the U.S.A. and Germany. On the export side Ireland mainly sends organic chemicals, electronic & telecommunication equipment and pharmaceutical products. Exports play a fundamental role in the states robust growth, but the economy also benefits from the accompanying rise in consumer spending, construction, and business investment. Its worth noting that Irelands tech boom doesnt goes without notice as the country is the largest exporter of software-related goods and services in the world.
4. Political & Legal FactorsFor many, the first thing that comes to mind when you think of politics in Ireland is the Northern Ireland debacle which has recently come to a resolution. In fact, Irelands political environment has played a major role in shaping and molding its new economy thanks to its pro-business political culture. This can be attributed to well built and run regulation, service, and fiscal environment that few countries can match. For Irish politics, networking is a way of life, and information