Economic growth in Ireland is expected to be broad and robust in 2015 and 2016. Exports will continue to be strong depending on its increase in trading partners and the depreciation of the euro. Household consumption will gather pace with employment and wages rising steadily and with low energy prices. Ireland’s economy is mostly based on services, with some industrial output and a small amount of agriculture.
Agriculture once the most important sector of Ireland has now dwarfed by the industries and services. Economy also benefited from the rise in consumer spending, construction and business investment.
Agri-food industry is considered to be one of the most important sector of the Irish economy. It contributes about 8% of GDP. 70% of the total land area in Ireland is occupied for agricultural purposes. Cattle raising and dairying is also the most important sectors. Also the Irish fishing industry also contributes a significant part in the Ireland economy particularly in rural coastal areas where there are only few industries. Fishing industry has incorporated many diverse forms in fish farming which indirectly raised the employment rates.
With the rising high technology, most active sectors are life sciences and medical technology. There is also a considerable consolidation of information technology sector. More than 1000 foreign owned companies involved in manufacturing business in Ireland. Foreign companies produce more than two-thirds of export goods and employ around 45% of the manufacturing sector’s workforce. Foreign owned companies are into high tech sectors such as chemical production, metals, electrical engineering and computer hardware.
The service sector in Ireland accounts for over half of GDP and 64% of employment. In past decade, service sector has grown largely because of the growth in financial services, telecommunications and tourism. The banking system in Ireland is dominated by the AIB Bank, Bank of Ireland and Ulster Bank. Insurance industry in Ireland is a leader in both retail markets and corporate customers. Major drawback of the tourism industry is the poor quality of services due to the shortage of skilled labour as well as increasing industrial unrest.