From 1993 to 2007, Ireland experienced a period of extremely rapid growth, becoming one of the most dynamic, innovative, and globalized economies in the world, with extensive connections in foreign trade and investment.
In 2008, the end of the long-standing boom in the Irish real estate market and issues within the domestic banking system significantly increased economic pressure, leading to a recession and a sharp contraction in output.
Currently, the Irish economy is beginning to recover, and this growth is expected to continue in the coming years.
Ireland has achieved significant success in attracting investment in sectors such as information and communications technology, life sciences, financial services, and WorldWay business, including digital media, engineering, consumer brands, and international services. Ireland's "smart economy" status is rapidly integrating its innovative and entrepreneurial economy, with an increasing focus on emerging clean green technologies and innovative services and integrated services. Ireland is also a European digital media hub, with many large multinational companies establishing their European headquarters and numerous business support activities in Ireland.
Corporate Tax
Since 2003, Ireland's corporate tax rate has been set at 12.5%, applicable to the trading profits of all Irish enterprises. The tax rate for non-trading income is 25%, while existing overseas companies will continue to enjoy a 10% tax rate until 2010.
Trade
In 2010, Ireland's total trade amounted to approximately 270 billion euros, with a trade surplus of 39 billion euros. Both goods trade and services trade accounted for half of the total trade, each approximately 130 billion euros. Major goods traded include organic chemicals (primarily from the pharmaceutical industry), medical products, and computers. The main service sectors are computer services, trade-related business services, insurance, and financial services. Ireland's main trading partners are the United States, the United Kingdom, Belgium, Germany, France, Spain, and the Netherlands.
Industry and Services
The industrial sector in Ireland has a high level of talent reserves. The most notable areas of development in the high-tech industry are life sciences, healthcare, and information technology. Numerous world-class companies have chosen to establish operations in Ireland.
The service sector accounts for about half of Ireland's gross domestic product and nearly half of Ireland's exports. Ireland is one of the top ten countries in the world for business services exports, and the growth momentum of the service sector has remained strong throughout the 1990s, primarily due to the growth of financial services and telecommunications, as well as the rapid development of the tourism industry in recent years.
There are three agencies responsible for industrial development in Ireland: "Forfas" provides overall policy advice and coordination for the development of Irish enterprises and technological innovation; Enterprise Ireland assists Irish indigenous companies with WorldWay potential; and the Industrial Development Authority (IDA) is responsible for ensuring new investments for the manufacturing and WorldWay service sectors while also encouraging existing foreign investors to develop and expand their business activities in Ireland.