4. Irish Economy Today
-10.7% -0.25% +2.25%
-11.4% -1.50% +2 %
-4.5% -0.5% +1.75%
-4.1% +5% +4.75%
-4.9% 0% +2.25%
2009 2010
GDP
GNP
Inflation
Exports
*Balance of Payments (Current % of GNP)
BoP*
2011
Exports continue to perform robustly
Consumption and investment levels stabilising
Growth predicted for 2011
5. Durable Sectors
ICT 7 of the world’s top 10 companies
Pharmaceuticals 16 of the world’s top 20
Medical Devices 140 major companies
Financial Services 50% of the world’s top banks
10. Government Finances
• Government introducing 4 year deficit reduction plan
• EU approved Stability plan
• Exchequer fully funded to July 2011
• Debt/GDP ratio in line with EU Average
• Bank support accounted for in 2010 is spread over 10 years
• The debt rate is manageable & not expected to be
greater than the early 1990s.
11. US Ireland Investment
Relationship
Ireland in the US US in Ireland
•1,300 Business Operations
•$34 Billion invested
•82,000 jobs
•600 Business Operations
•$165 Billion invested
•100,000 jobs
Bilateral Ireland/US Trade of €27 billion
13. Competitiveness Realigning our costs
• “Property costs falling sharply.”
• Rent down 45%
• Dublin has fallen from 20th to 33rd in terms of office
occupancy costs (DTZ)
• “Irish labour costs becoming significantly more
competitive”
• Salaries for new employees down between 5 % and
22% ( Irishjobs.ie)
• Versus the EU 13% improvement in wage costs
• Cost of Living reduced
• Consumer Prices fell 1.7% in 2009.
14. Competitive Tax Jurisdiction
• Our 12½% corporation tax rate remains – and will
continue to remain.
• Finance Minister Brian Lenihan issued a statement
on behalf of the Irish Government re-affirming
Ireland's long-term commitment to the 12.5%
corporate tax rate as "a cornerstone of Irish
industrial policy.
• 60 International Tax Treaties
• EU & OECD approved
15. Investing in Our Future
• New Nationwide Highway Network of 740 Km
• New 72,000 M2 International Airport Terminal
• First two European airports with full US Customs & Border
Clearance
• Rail stock doubled & 650 Km of new tracks laid
• New state of the art Convention Centre- 8,000 capacity
• Two Dublin Metro lines planned and committed too
• ICT for Schools Programme- 60,000+ new computers
when?
16. Global Endorsements
• “Ireland faced a significant competitiveness disadvantage in 2009, but its real effective
exchange rate is currently viewed broadly in line with medium-term fundamentals. This
improvement was associated with a deep recession, but Ireland has recently returned to
relatively rapid growth” IMF Sept 2010
• According to the 2010 Global Location Trends report by IBM Ireland is the top destination globally
for jobs by inward investment per capita.
• A European Commission study of third level education 2010 stated that International recruiters
believe that Ireland produces the most highly-employable graduates in the world.
• According to the 2010 KOF Globalisation Index, Ireland is ranked as the second most
economically globalised country in the world.
• Ireland is among the world’s most competitive locations for R&D investment, and the most
competitive in Europe according to a major study by accounting and consulting firm, Mazars.
• Ireland has been ranked 8th in the world for quality of research in Materials Science over the past
decade, according to Thomson Reuters.
17. Why Ireland?
MultinationalExperienceIreland
Flexibility of labour law versus continental Europe
Skills Availability with business and technical knowledge
Productivity and strong work ethic of Irish staff
Adaptability of Irish staff when faced with new challenges
Pro-business Environment excellent IP protection and low CTR
Ease of global communications (language & time difference and telecoms)
Ireland ahead of the curve immediate response to banking & global crisis
Ease of Doing Business
Excellent multilingual availability
National Strategy & foresight Green agenda & Convergence
Constant Reinvestment of Multinational Clients
18. Conclusions
• Ireland is returning to growth
• Led by durable exporting industries
• Public Finances are secure
• Costs are falling and productivity increasing
• FDI continues to grow
• 12.5% tax rate guaranteed
• Capital Investments producing results
Ireland is open for business
19. For Further Information
American Chamber of Commerce Ireland
+353 (0)1 661 6201
www.amcham.ie
info@amcham.ie
Disclaimer: The information contained in this document is meant for general information purposes only. The information
contained in these notes is not guaranteed, although the American Chamber has aimed to ensure its accuracy. Any
expressions of opinion are subject to change without notice.