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IRELAND TODAY

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Ireland is now being transformed due to economic growth and globalisation.   We are increasingly becoming ‘an island at the centre of the world’.  The visibility and reputation of the ‘Irish brand’ has incredibly positive economic implications as we increasingly become an ideal partner for trade and investment.

 

We are seen as the 51st state of the U.S.  

CHALLENGES FOR IRELAND TODAY

The dominant challenge facing Ireland at present is lack of housing. This is causing stress across all sectors of society. In 2004 circa 90k home were built – this dropped to a low of 10k in 2012 for approx. 3 to 5 years. In 2023 32k homes were built. The estimate new build  for 2024 is 35k. The population is expected to increase by 922k between 2022 and 2040, resulting in a total population of over 6.1060 million people by the end of this period. By
 

2050 the population is projected to be 6.5 million. The proportion of owner occupied dwellings versus rental dwellings was 66% in 2022. The total number of households living in rental accommodation is currently over half a million. House prices have increased by 5.8% in the past year.

 

Rental prices have increased by 8.9% in the first quarter of 2023. The supply of housing has changed dramatically since 2008.

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Ireland's Financial Recovery

Ireland is now one of the richest members of the E.U. We rank second in the European Union in terms of GDP with  €79,300 per capita, well above the EU average of €37 600 per capital.  Ireland accounts for 3% of the EU's total GDP.

Irish Corporate Tax Revenues

Our corporate tax revenues have grown from a low of €4billion in 2011 to a high of         €24 billion in 2023.​​​​​​​​​​​​​​​​​​​

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Sovereign Wealth Fund

In May 2023, the government announced the establishment of a Sovereign Wealth Fund (SWF), into which it proposes to inject sixty billion euros. It expects to earn sixty-five billion euros in budget surpluses between now and 2025. The SWF will be managed by the National Treasury Management Agency and is modelled on similar funds in Norway, Japan and Australia.

Foreign Direct Investment

Foreign direct investment underpins Ireland’s success. Ten multinationals, including Apple, Google, Microsoft and Meta, account for 60% of the total tax in 2022. The rate of corporate tax in Ireland is now 15% in accord with the European Union. 

Brexit

Britain’s decision to leave the EU in June 2016 has further boosted the economy. Between 2016 and 2021, Dublin attracted 135 new financial companies, equal to one quarter of Brexit-related moves, by firms who wanted to remain within the EU. Ireland offers a highly educated, English-speaking workforce and sophisticated financial infrastructure, in addition to its low corporate tax rates.

Employment

By end of 2023 there was 2.7ml people employed, and 119,300 people unemployed.

Embassies and Consulates

Embassies and consulates are opening globally with representation now in about eighty-seven locations currently.  Ireland’s global influence and connectivity is growing. 

Tourism

Tourism is Ireland’s largest indigenous sector – with 254,000 employed and €5.3bl income in 2023, (excluding air fares).  Twenty-seven percent of the business comes from the U.S.

Housing

The dominant challenge facing Ireland at present is lack of housing and related infrastructure. The construction industry has always been cyclical as it responds to population demand.  Prior to the financial crisis in 2008 house construction reached a peak of circa 90k homes per annum, but then fell to a low of 10k per annum for a number of years, from before rising slowly to the cira 30k homes currently being built each year.

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Home Prices:

  • Year 2022 approx. 5.8% increase in house prices

  • Year 2023 Q1 approx. 8.9% increase in rental prices

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Population Growth 

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Population Growth: Our population has grown significantly in conjunction with the growth of our economy. Our growth in population has been significantly impacted by immigration. 1 in 5 people who live in Ireland were not born here. The 2022 census notes that 313,000 EU born people now live in IrelandThis population growth brings significant opportunity for a more diverse society and for the growth of the economy

IN SUMMARY

  • Our multicultural society and well-educated young people are key to our future.

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  • Our economic migrants need the housing, the education and the opportunities to assimilate well and become productive citizens.

 

  • Our housing supply is slowly beginning to meet demand but needs further acceleration to accommodate our growing population.

 

  • We need to overcome planning delays and to further develop our infrastructure.

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  • ​Our government needs to maintain centrist economic and societal policies.

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  • We need to address our costs. In June 2023, a Eurostat report cites Ireland as one of the most expensive countries in the EU for goods and services. Prices for housing were 46% above the EU average.

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  • We need to grow our own indigenous industries.

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  • Our special relationship with the U.S.A. is an essential part of our future.

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