General

The economy of Ireland is modern and trade-dependent with growth averaging a robust 10% in 1995–2000. Agriculture, once the most important sector, is now dwarfed by industry, which accounts for 46% of GDP, about 80% of exports, and employs 29% of the labour force. Although exports remain the primary engine for Ireland's robust growth, the economy is also benefiting from a rise in consumer spending and recovery in both construction and business investment. The annual rate of inflation stands at 5.1% as of 2007, up from recent rates of between 3% and 4%. On the EU HICP inflation index, inflation is 2.7%, against an EU average of 1.8%.

House price inflation has been a particular economic concern (average house price was €251,281 in February 2005). Unemployment is low but is rising and up to 30,000 jobs may be lost between 2007 and 2008 much of which is attributed to a slowdown in house building. Incomes have been rising rapidly as well as service charges (utilities, insurance, healthcare, legal representation, etc.). Dublin, the nation's capital, was ranked 16th in a worldwide cost of living survey in 2006 (up from 22nd in 2004 and 24th in 2003).

Ireland has the second highest per capita income of any country in the EU next to Luxembourg, and fourth highest in the world based on measurements of Gross Domestic Product (GDP) per capita. Many economists feel that GDP per capita is an inappropriate measure of national income for Ireland because it does not consider the repatriation of profits by multinational companies. Gross National Income per capita, takes account of this. In any case, the vast majority of wealth held by Irish citizens is invested in property. Furthermore, the construction sector, which is inherently cyclical in nature, accounts for a significant component of Ireland's GDP and GNP and any downturn in this sector is likely to have a profound impact. In 2005, the World Bank measured Ireland's GNI per head at $41,140 - the seventh highest in the world, sixth highest in Western Europe, and the third highest of any EU member state.

Economy - overview

Ireland is a small, modern, trade-dependent economy with growth averaging 6% in 1995-2006. Agriculture, once the most important sector, is now dwarfed by industry and services. Industry accounts for 46% of GDP, about 80% of exports, and 29% of the labour force. Although exports remain the primary engine for Ireland's growth, the economy has also benefited from a rise in consumer spending, construction, and business investment. Per capita GDP is 40% above that of the four big European economies and the second highest in the EU behind Luxembourg. Over the past decade, the Irish Government has implemented a series of national economic programs designed to curb price and wage inflation, reduce government spending, increase labour force skills, and promote foreign investment. Ireland joined in circulating the euro on 1 January 2002 along with 11 other EU nations.