page_title: Republic of Ireland
section_title: Economy
hierarchical_section_title: Republic of Ireland / Economy
context_page_description: Ireland, also known as the Republic of Ireland, is a country in north-western Europe occupying 26 of 32 counties of the island of Ireland. The capital and largest city is Dublin, which is located on the eastern side of the island. Around 40% of the country's population of 4.9 million people resides in the Greater Dublin Area. The sovereign state shares its only land border with Northern Ireland which is part of the United Kingdom. It is otherwise surrounded by the Atlantic Ocean, with the Celtic Sea to the south, St George's Channel to the south-east, and the Irish Sea to the east. It is a unitary, parliamentary republic. The legislature, the Oireachtas, consists of a lower house, Dáil Éireann, an upper house, Seanad Éireann, and an elected President who serves as the largely ceremonial head of state, but with some important powers and duties. The head of government is the Taoiseach, who is elected by the Dáil and appointed by the President; the Taoiseach in turn appoints other government ministers.
  The state was created as the Irish Free State in 1922 as a result of the Anglo-Irish Treaty.
context_section_description: Ireland is an open economy (6th on the Index of Economic Freedom), and ranks first for "high-value" foreign direct investment (FDI) flows. Using the metric global GDP per capita, Ireland ranks 5th of 187 (IMF) and 6th of 175 (World Bank). The alternative metric modified Gross National Income (GNI) is intended to give a more accurate view of "activity in the domestic economy". This is particularly relevant in Ireland 's small globalised economy, as GDP includes income from non-Irish owned companies, which flows out of Ireland. Indeed, foreign multinationals are the driver of Ireland's economy, employing a quarter of the private sector workforce, and paying 80% of Irish business taxes. 14 of Ireland's top 20 firms (by 2017 turnover) are US-based multinationals (80% of foreign multinationals in Ireland are from the US; there are no non-US/non-UK foreign firms in Ireland's top 50 firms by turnover, and only one by employees, that being German retailer Lidl at No. 41).
  Ireland adopted the euro currency in 2002 along with eleven other EU member states.
  The country officially exited recession in 2010, assisted by a growth in exports from US multinationals in Ireland. However, due to a rise in the cost of public borrowing due to government guarantees of private banking debt, the Irish government accepted an €85 billion programme of assistance from the EU, International Monetary Fund (IMF) and bilateral loans from the United Kingdom, Sweden and Denmark. Following three years of contraction, the economy grew by 0.7% in 2011 and 0.9% in 2012. The unemployment rate was 14.7% in 2012, including 18.5% among recent immigrants. In March 2016 the unemployment rate was reported by the CSO to be 8.6%, down from a peak unemployment rate of 15.1% in February 2012. In addition to unemployment, net emigration from Ireland between 2008 and 2013 totalled 120,100, or some 2.6% of the total population according to the Census of Ireland 2011. One-third of the emigrants were aged between 15 and 24.
  Ireland exited its EU-IMF bailout programme on 15 December 2013. Having implemented budget cuts, reforms and sold assets, Ireland was again able to access debt markets. Since then, Ireland has been able to sell long term bonds at record rates. However, the stabilisation of the Irish credit bubble required a large transfer of debt from the private sector balance sheet (highest OECD leverage), to the public sector balance sheet (almost unleveraged, pre-crisis), via Irish bank bailouts and public deficit spending. The transfer of this debt means that Ireland, in 2017, still has one of the highest levels of both public sector indebtedness, and private sector indebtedness, in the EU-28/OECD.
  Ireland continues to de-leverage its domestic private sector while growing its US multinational-driven economy. Ireland became the main destination for US corporate tax inversions from 2009–2016 (mostly pharmaceutical), peaking with the blocked $160bn Allergan/Pfizer inversion (world's largest inversion, and circa 85% of Irish GNI*). Ireland also became the largest foreign location for US "big cap" technology multinationals (i.e. Apple, Google, Microsoft, Facebook), which delivered a GDP growth rate of 26.3% (and GNP growth rate of 18.7%) in 2015.  This growth was subsequently shown to be due to Apple restructuring its "double Irish" subsidiary (Apple Sales International, currently under threat of a €13bn EU "illegal state aid" fine for preferential tax treatment).
caption: Ireland is part of the EU (dark blue & light blue) and Eurozone (dark blue).