Economic trends
The Irish economy was seriously affected by the international financial crisis because of its extensive in-sourcing, its high degree of financialization and the importance of real estate in the economy. It was the first European country to go into recession. The public deficit reached 12% in 2009. The unemployment level, which was low in 2007, started to raise as early as 2008, to reach 12% today.
The Irish Government has implemented a series of national economic plans designed to control prices and inflation through salaries, invest in infrastructures, improve labor force skills, and promote foreign investment. Even though the export sector is dominated by foreign multinationals, it remains a key element of the Irish economy.
Main branches of industry
Agriculture remains a key sector accounting for around 3% of the GNP. 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 a deliberate policy of promoting export market high-tech companies, partly by offering attractive packages to investors. The sector contributes more than a third of the GNP. Textiles, chemical and electronic products have performed particularly well.
The service sector (approximately two-thirds of the GDP), banking and finance have grown to the extent that Dublin now has a sizable international financial center, and tourism has become a substantial foreign exchange earner (5% the GDP).
International trade
Ireland is a very open economy and therefore very dependent on international situations. Until 2008, it showed a largely surplus trade balance. However, due to the international crisis, the country is showing a deficit trade balance in 2009. Main imports are machinery and equipment, oil and petroleum products, textiles and clothing. Main exports are computers, chemical and pharmaceutical products, live animals and animal products.
Ireland's main trade partners are the European Union and the United States.
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