Ireland's economy: stages of development and key industries

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:54

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 UK. Ireland occupies most of the territory, while 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 highly developed industrial sector, 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".

Economy of Ireland: General

As a result of the crisis of 2008-2009, the entire system of the economy suffered greatly. GDP in Ireland in 2009 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 period for the general characteristics of the economyIreland used the concept of "Celtic tiger" (by analogy with Asian tigers). GDP increased by more than 7% annually, which exceeded global standards (3.2%) and Asian countries (4.3%). The peculiarities of the Irish economy that provided the Celtic economic miracle, according to experts, are accession to the EU and the euro area, reform of the tax system (a radical reduction in the rate) and the labor market, investment in telecommunications, information technology, pharmaceuticals and he althcare, financial and international services, e-commerce, low entry barriers, US investment.

Despite this, in the fall of 2010, the country's budget, real estate market and banking sector suffered greatly from the consequences of the global crisis. The government was forced to cut several thousand jobs, introduce new taxes, lower wages and turn to the IMF for a loan.

National currency

Ireland used the Irish pound as its national currency, but in 1999 it was included in the list of eleven EU states that introduced the euro throughout their territory. Interestingly, all banknotes have a common design, but 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 goods, information technology, food processing andmechanical 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. Traditionally, products are made from silk, linen and wool. Many small companies under a common name unite to enter the world markets. The food industry occupies a large share. The country produces flour, sugar, dairy and meat products, tobacco products, beer and whiskey.

The Irish economy is based on the consumption of oil, peat, coal, natural gas. The energy sector is represented mainly by thermal power plants, which supply up to 95% of electricity. It is in the Republic of Ireland that the largest power plants in the world operate, namely Lanesborough, Edenderry, West Offley, operating on peat. Hydroelectric power plants account for 4% of electricity generation.

Mining

In Ireland, silver, copper, lead, zinc, barite are mined, there are discovered reserves of gold and natural gas. Significant deposits of coal are concentrated in the counties of Carlow and Kipkenny, near Avoka there is a copper deposit, in the central part of the country - lead-zinc. For the needs of the construction area, sand, gravel and stone are mined. Ireland's economy operates with little diversity and insufficient natural resources.resources.

Agriculture in Ireland

The main sector of agriculture is livestock, which accounts for 80% of GDP. Cattle breeding areas are concentrated around Dublin, in the east and south of the country. The largest manufacturers are merged. In the central and eastern regions of Ireland, crops are grown: wheat, sugar beets, barley, oats, potatoes. Some counties grow only certain varieties of plants. Fishing is active in coastal waters. The largest fishing ports are Dublin, Dun Laare, Skerris. In short, agriculture is subsidized in Ireland's economy.

Banking and Finance

The Central Bank of Ireland ensures the stability of the euro-zone, develops and implements a single monetary policy, manages official reserves and conducts foreign exchange transactions. The main European institutions in Ireland are also represented. These are commercial and trade banks, industrial and settlement banks. The Irish Stock Exchange was founded in 1793. It is one of the oldest exchanges in Europe.

The entire financial system was hit hard by the 2008-2009 crisis. The domestic real estate market collapsed because developers took a significant place in the loan portfolio. In 2008, government guarantees were issued in response to the crisis, covering all debts, bonds and deposits, but the situation only worsened. Capitalizationfailed, and the government decided to nationalize the bank with a capitalization of less than 2%. Then 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

Historically, neighboring Great Britain played the leading role in Ireland's external trade, but in the last twenty years there has been a consistent decline 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 as one of Ireland's leading trading partners is steadily growing, 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 the annual income is almost 5 billion euros. The country has been repeatedly named the best holiday destination, and Cork was recognized as one of the ten best cities in the world. Most tourists come to Ireland from Germany, France, the US and the UK.

Economy of Northern Ireland

Most (about 80%) of Northern Ireland is occupied by agricultural land. The lands of the counties of Fermanand and Tyrone are used mainly for grazing, in other territories mixed farming is common. That is, farmers (mostly family) are engaged in both livestock breeding and crop cultivation.simultaneously. The number of farms is gradually decreasing, and large specialized farms are coming in their place.

Sectors of the economy of Northern Ireland are concentrated in areas of large ports. One of the most famous is Belfast, Londonderry and Larne are also large. In the eastern part are located the production of the most important sectors of the economy of Northern Ireland: shipbuilding, textile production. Currently, the old areas are gradually being replaced by new ones - electronic and aerospace.

On the territory of Northern Ireland, deposits of copper ore, brown coal, iron ore, lead ores, bauxite have been discovered, but it is unprofitable to extract these minerals. Developments of crushed stone, limestone and sand are developed. The region imports energy from the UK. The mining industry is generally very underdeveloped, but Northern Ireland's industrial complex outpaces agriculture in terms of income and employment.