Ireland Update
Spring 2014
Ireland Update Spring 2014
Ireland
Capital:
Dublin
Population:
4.5 million
Official languages:
English and Irish
Currency:
Euro
Major trade partners:
US, UK, Eurozone, Asia and Australia
Major industries:
ICT, Life Sciences, Financial Services, Med Tech,
Online, Agriculture and Tourism
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
The Irish economy today
• Ireland is continuing to see economic growth
• Government budget deficit has decreased every year since 2008
• Exports at all time high of €177 billion
• Over €500 million in pro-jobs tax measures included in Budget 2014
• Employment grew by 61,000 in 2013
• GDP is forecast to grow by 2.1% during 2014
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Exiting the Bailout
Ireland successfully exited the EU/IMF/ECB Bailout in December 2013
• Banks have been recapitalised & restructured
• Financial regulatory system transformed
• Mortgage Arrears Resolution Targets set
• GDP is forecast to grow 2.1%
The key objectives of the programme have been achieved and the conditions set by the Troika have
been delivered
The Managing Director and Chair of the IMF, Christine Lagarde, said:
“Ireland has successfully completed its EU-IMF supported program. Steadfast policy implementation
by the Irish authorities has underpinned the achievement of core program objectives: stabilizing the
financial sector, significantly improving the fiscal position, and regaining market access. Renewed job
creation and a range of positive indicators signal an emerging recovery. As a result, Ireland is now in a
much stronger position than when its program began.”
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Overall impact of FDI
1,033 multinationals now have operations in Ireland
Employing 161,112
Indirectly employing 274,000
Multinationals spent €20.8 billion in the Irish economy in 2013
• €8 billion on payroll
• €2.4 billion on Irish materials
• €10.4 billion on Irish services
A further €1.3 billion was invested in research and development
Contributed $2.8 billion in corporate tax to the Irish Exchequer
Accounted for €120.8 billion in exports
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
The Irish-US Economic Relationship
US in Ireland:
- 115,000 Jobs
- 700+ Companies
- $204 billion in FDI stock
- 72% of all inward investment
- 26% of Ireland’s GDP
Ireland in the US:
- 130,000 Jobs
- 227 Companies
- 2,600 locations across all 50 states
- $25 billion in FDI stock
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
The Social Impact of US companies
• 2280 Projects
• 80,000 + Employees
• 164,756 Volunteer Hours
• 5,040 Days
• 96 Years
Projects were in the fields of:
• Education
• Health & Environment
• Community Support
• Overseas Aid
• Aid & Sport
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Investment Continues!
2014:
2013:
In the first three months
In 2013 164 projects were won:
13 projects were won:
• 78 first time investments
• 1120 jobs will be created
• 59 expansions
• 7 first time investments
• 27 R&D projects
• 6 expansions
There was success in attracting FDI across all sectors but particularly in digital media/content, ICT,
international services, life sciences and business services.
American companies made 118 investments - accounting for 72% of IDA announcements in 2013.
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Key sectors
Ireland is home to:
ICT: 10 of the top 10 global companies
Born on the Internet: All of the world’s top 10 companies
Gaming: 3 of the top 6 global companies
Pharmaceuticals: 9 of the top 10 pharmaceutical companies
Medical Devices: 15 of the top 20 Med Tech companies
Engineering: 7 of the top 10 Industrial Automation companies
Financial Services: 50% of the world’s top banks
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
ICT
Ireland is home to:
10 of the top 10 global ICT companies
9 of the top 10 global software companies
3 of the top 3 global security software companies
3 of the top 3 global enterprise software companies
4 of the top 5 IT services companies
105,000 people are employed in the technology sector in Ireland
Ireland has one of the highest concentrations of ICT activity and
employment in the OECD
ICT exports are worth €72 billion per annum
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Online
Ireland is home to:
The top 10 ‘born on the internet companies’
3 of the top 6 gaming companies
The biggest names in social media
Ireland is becoming known as a hub for ‘hosting data’
Ireland’s culture of innovation and adaptability ensure a
Potential for growth in this fast-paced industry
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Pharmaceuticals
Ireland is home to:
9 of the top 10 pharmaceutical companies in the world
24,500 people directly employed in the sector
24,000 people indirectly employed providing support services
€55 billion Pharma/Bio/Chemicals of pharmaceuticals in the world
Pharmaceuticals and Chemicals accounted for 30%
of Ireland’s exports in 2013
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Medical Devices
Ireland is home to:
15 of the top 20 Med Tech companies
250 Med Tech firms in Ireland
25,000 employed in the industry
€7.2 billion annual value of Irish Med Tech exports
2nd largest exporter of medical technology in Europe
Irish Med Tech exported directly to 95 of the world’s top
100 countries ranked by their GDP
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Financial Services
Ireland is home to:
50% of the world’s top bank
500 + firms located in Ireland
33,000 employed in the sector
7th largest provider of wholesale financial services in the EU
Financial services accounted for 9% of Ireland’s exports in 2013
9th largest international banking market
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
What is made in Ireland?
33% of the world’s contact lenses
50% of ventilators used in acute hospitals worldwide
100% of the world’s Botox
80% of the world’s medical stents
An injectable device that 30 million diabetes sufferers rely on
45% of the world’s Tic Tacs – 36 Tic Tacs produced per second!
12 million Jelly Beans a year
Sudocrem was invented and still produced solely in Dublin
1 in 5 burgers served in McDonald’s across Europe is made with Irish beef
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Living and working in Ireland
Ireland has plenty to offer the skilled workers from around the world who come to work and live here.
Ireland is a culturally rich and diverse environment with something to offer all interests.
Music – for a small island Ireland has made a significant contribution to the world of music.
Home-grown and international talent can be enjoyed in the wide range of gigs, concerts and
festivals which are held throughout the country.
Sport – GAA, Football, Rugby, Golf are all popular around the country.
Art and Literature – Ireland is the birthplace of some of the world’s
greatest writers; Beckett, Heaney, Joyce, George Bernard Shaw, Wilde
and Yeats to name but a few.
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Global endorsements
Ireland topped Forbes’ list of ‘The Best Countries for Business’
2013 IMD World Competitiveness Yearbook ranked Ireland:
• 1st Flexibility and Adaptability of workforce
• 1st Investment Incentives
• 1st Attitudes towards globalisation
• 2nd Openness to foreign investors
• 3rd Availability of skilled labour
• 3rd Corporate tax rates and real corporate taxes
IMD Global Location Trends 2013 ranks Ireland 4th for
FDI job creation and 1st with regard to average value of
investment projects.
The Global Innovation Index 2013 ranks Ireland the 10th most innovative country.
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Global endorsements
• Ireland is ranked 15th for Global Ease of Doing Business
• It is also considered the world’s third most globalised economy
• 1st in Western Europe for ‘Best to Invest’
• Ranked as the second best performing country in relation
to jobs created from inward investment relative to population
• Ireland is ranked as the number one destination country by average
value of investment project 2012
• Ireland ranked 18th in the Global Talent Competitiveness Index 2013
• Ireland was 20th out of 122 countries in the Human Capital Index 2013
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Why Ireland for FDI?
THE GOLDEN PYRAMID OF:
• TAX
• TALENT
• COMPETITIVENESS
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Tax
Ireland has a competitive and transparent taxation system
• 12.5% corporate tax rate
• 25% R&D tax credit
• Tax write-off for broadly defined
Intellectual Property (IP) acquisitions
• Transparent tax and legal system
• Ireland has signed 70 double taxation
treaties with other nations
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Talent
Ireland’s workforce is a key feature in her attractiveness as a location for investment
• The country provides a young and educated labour force
• Ranked 1st for flexibility and adaptability of workforce
• Ranked 1st in Europe for attaining third level education
• Ranked 3rd for availability of skilled labour
• Ranked in the top 10 for quality of education
• Dublin was ranked 1st in the world for human capital
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Competitiveness
Ireland has made progress in regaining its cost competitiveness
• Ranked 17th in the IMD Competitiveness Yearbook in 2013
• Ireland’s productivity is c. 40% above the EU27 baseline
• Only country in the EU to experience a decrease in inflation between 2008 and 2012
• Ireland ranked in the top 10 for ‘Ease of starting a business’
© American Chamber of Commerce Ireland 2014

Ireland Update Spring 2014
Conclusion
The Irish economy is returning to growth
• Ireland has successfully exited the bailout and maintained investor confidence
• FDI is at an all-time high in the country
• The US remains the single largest source of investment in Ireland
• The golden pyramid of Talent, Tax and Competitiveness are at the
core of our success
• Ireland is the ‘Best Country to do Business’!
© American Chamber of Commerce Ireland 2014

For Further Information
American Chamber of Commerce Ireland
Tel: +353 (0)1 661 6201
| www.amcham.ie | Twitter: @AmericanChamber | info@amcham.ie |
Disclaimer: The information contained in this document is meant for general information purposes only.
The information contained in these notes is not guaranteed, although the American Chamber has aimed to ensure its accuracy.
Any expressions of opinion are subject to change without notice.