Ireland Economic Forecast

By: EconomyWatch Content Team   Date: 16 June 2010

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Although Ireland is a small country, it is also a modern country. This country depends primarily on imports and exports and over the past decade, good Gross Domestic Growth or GDP has been experienced. In fact, from 1995 to 2007, the GDP was able to sustain a 6% GDP. However, as all countries, Ireland experienced some recession in the latter part of 2007 when the global financial crisis hit. Even so, this downward economy was the first time in 10 years that building and construction sectors were slowed. For a long time, agriculture, fisheries, and farming were the most critical sectors for Ireland but today, industry and services sectors are primary. Today, exportation has become a key player in the growth of Ireland’s economy but building and construction sectors have also begun to bounce back. Even prices for property have increased, also boosting the country’s economy. To encourage further growth, several national economic programs have been implemented by the government. With this, wage inflation rates and pricing will be controlled, infrastructure and facilities will see more investment, and a partly-public venture capital investment will be established.

Ireland GDP Forecast

In looking at the OECD-28, Ireland has an economy that is rated as one of the richest. The main reason is that corporate taxes have been reduced and in fact, these taxes are lower than the average for other countries in the European Union. Because Ireland has become independent, the existing growth of the GDP is expected to continue. Experts that provide forecasts for the Ireland GDP (Gross Domestic Product, Current Prices, US Dollar) use values based on national currency and projections for exchange rate. At the end of 2008, the GDP was reported at $267.58 billion in US dollars and by 2009, a 14.87% decrease occurred, leaving 2009 at $227.781 billion. With the new numbers for year-end 2009, Ireland was ranked worldwide at number 38. Using the same formula mentioned above, the 2010 forecast is not expected to change much, closing at $216.11 billion but for year-end 2015, a slight change is being predicted to $256.736 billion in US dollars.

Ireland Unemployment Forecast

Ireland is a unique country, one in the northwest region of Europe and surrounded by numerous islands. The most current numbers for the Ireland population is just over 6 million, thanks to a service-dominated economy. While agriculture was the primary source of income for a long time, the services sector is now considered the number one contributor to the growing economy. Approximately 67% of the Ireland population is employed, with the majority working in the services sector. However, work also comes from other sectors to include industries and agriculture. While work is available in this country and the Gross Domestic Product has seen steady growth, the Ireland unemployment rate is still high at 12%.

Ireland Inflation Rate Forecast

Using data averages for the year instead of end-of-period, the Ireland inflation rate is forecasted. At the end of 2008, the average for consumer pricing was at 3.11%. Then for the end of 2009, a significant reduction of 154.89% occurred, leaving numbers at a negative 1.706%, putting the country at number 176 for world rankings. For the forecasted year of 2010, forecasters believe the new inflation rate will be a negative 2.04%. However, going out another five years to 2015, the numbers turn positive, closing at 1.951%.

Ireland Current Account Balance Forecast

Then for the Ireland current account balance, forecasters remove capital and financial items and use all the remaining transactions to determine current numbers. The focus in this case is on transactions that would be between the country being projected and the rest of the world. For Ireland’s account balance in 2008, the numbers were a negative $13.89 billion in US dollars, which saw a decline of 51.71%. With that, 2009 was at a negative $6.705 billion that put it at number 162 for rankings around the world. Then in looking at 2010 and 2015, numbers being predicted for the current account balance are $0.85 billion and a negative $1.864 billion, which are also in United States dollars.


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