Ireland: Economic and Political Outline

Economic Overview

The Irish economy was seriously affected by the global financial crisis of 2008/2009 due to its high degree of internationalization, its high degree of financialization and the importance of real estate in economic activity. The first European country to enter recession (-7.6% in 2009), Ireland's economy stabilized in 2011, experiencing growth of around 1%, boosted by the resumption of exports. However, the country remains vulnerable, 40% of its exports going to eurozone currently experiencing crisis. Irish growth is expected at best to remain around 1%, but more likely to contract in 2012.

The priority of the Irish government is to implement the program adopted in December 2010 as part of the rescue plan signed with the IMF and the EU. Progress was made ​​in 2011 with the adoption of an unprecedented banking restructuring plan and a reduction of the deficit which exceeded the objectives of the program. Measures to enhance competitiveness and sustain growth and job creation were also adopted. However, the country still faces many challenges: domestic demand remains sluggish, unemployment is high and the country's trading partners are having difficulties as well. Authorities continue to be committed to fiscal consolidation, to the recovery of outstanding payments, and to supporting the unemployed's return to jobs.

The unemployment rate, which started to rise in 2008 and has reached almost 14% today, seems to be showing a slightly downwards tendency.

Main Sectors of Industry

Agriculture remains a key sector despite its small part of the GNP (3%).  The government is trying to consolidate its role in the economy by modernizing it and by expanding the food-processing industries (beef, dairy products, potatoes, barley and wheat).
Ireland’s recent industrial development has been achieved by an intentional policy promoting high-tech companies to export and, in part, by offering attractive packages to investors. This sector contributes to more than one third of the GNP. Textiles, chemical and electronic products have, in particular,  obtained high results.
The service sector (approximately two-thirds of the GNP), banking and finance have experienced  such a large growth that Dublin counts now with a sizable international financial center and tourism has become a substantial source for foreign exchange revenues (5% the GNP).

Source: World Bank - Last Available Data.

Indicator of Economic Freedom

Score:

78.7/100

Position:

Mostly free

World Rank:

7/179

Regional Rank:

2/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

Sources of General Economic Information

Ministries

Department of Enterprise, Trade and Employment
Department of Agriculture, Fisheries and Food
Industrial Development Agency

Statistical Office

Central Statistics Office

Central Bank

European Central Bank
Central Bank and Financial Services Authority

Stock Exchange

Irish Stock Exchange

Other Useful Resources

Economic Profile

Main Online Newspapers

Irish Examiner
Irish Independent
Irish Times
An Phoblacht

Economic Portals

The Economic and Social Research Institute

Political Outline

Type of State

Ireland is a sovereign, independent, democratic state with a parliamentary system of government. The president, who serves as head of state in a largely ceremonial role, is elected for a 7-year term and can be re-elected only once. There is universal suffrage for those over 18.

Executive Power

President, chief of state and Prime Minister (Taoiseach), head of government.

Legislative Power

Bicameral national Parliament (Oireachtas): House of Representatives (Dail) and Senate (Seanad).

Main Political Parties

- Fianna Fail: represents the tradition that rejected the treaty because the present six counties of Northern Ireland were excluded from the outset.
- Fine Gael: Fine Gael represents the tradition that accepted the treaty as a stepping-stone to an eventual republic of the whole island.
- Others: Labor, Progressive Democrats, Green Party, Sinn Fein.

Current Political Leaders

President: Michael D. HIGGINS - Labour (since 29 October 2011)
Prime Minister: Enda KENNY (since 9 March 2011)

Next Election Dates

Presidential elections: October 2018
Parliamentary: 2016

Indicator of Freedom of the Press

World Rank:

15/179

Evolution:

5 places down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).