World Country Guide

Business Profile

Economy
Ireland’s recent economic history is characterised by what is now the clich of the ‘Celtic Tiger’. Fuelled by EU membership and effective investment promotion policies, the Irish economy has been transformed over a period of two decades from a European backwater into the fastest-growing economy in the EU.
Hitherto Ireland had not been industrialised to the same degree as the rest of Europe, and only recently has agriculture been overtaken as the largest single contributor to the national product. It remains a key sector, and the Government is seeking to consolidate its role within the economy by modernisation and expansion of food-processing industries. Beef and dairy dominate the sector, but there is also large-scale production of potatoes, barley and wheat. Ireland’s recent industrial development has been achieved by a deliberate policy of promoting export-led and advanced technology businesses, partly by offering attractive packages for foreign investors. Textiles, chemicals and electronics have performed particularly strongly. Most of Ireland’s economic development in the 1990s, however, was in the service sector. Banking and finance have grown to the extent that Dublin now supports a sizeable international financial centre, while tourism has become a substantial foreign exchange earner.
The statistics of Ireland’s remarkable development are average GDP growth between 7 and 10 per cent since the mid-1990s, while inflation and unemployment were kept consistently below 5 per cent. However, there has been a slowdown of late with GDP growth in 2004 being 1.4 per cent. The Irish are famously enthusiastic about Europe and there is little of the scepticism so prevalent in Britain. Ireland joined EMU with the majority of EU members in the first wave at the beginning of 1999, despite some concern about the consequences of Britain’s non-membership. Trade with the UK, which provides 30 per cent of total imports and takes 20 per cent of Ireland’s exports, remains important but the proportion is declining gradually as other EU countries assume greater significance.

Business
Businesspeople should wear formal clothes for meetings. Local businesspeople are very friendly and an informal business approach is most successful. However, it is advisable to make prior appointments and to allow enough time to complete business matters. Avoid business visits in the first week of May, during July, August and at Christmas or New Year.

Commercial Information
The following organisation can offer advice: Chambers of Commerce of Ireland, 17 Merrion Square, Dublin 2 (tel: (1) 661 2888; fax: (1) 661 2811; e-mail: info@chambersireland.ie; website: www.chambersireland.ie).

Conferences/Conventions
For more information, contact Filte Ireland, Bord Filte, Baggot Street Bridge, Dublin 2 (tel: (1) 602 4000; fax: (1) 602 4336; e-mail: cbi@failteireland.ie; website: www.conference-ireland.ie).