The new trading strategy that attracted investors to Ireland
In today’s reality, it seems that most of our traditional investment share classes are volatile, and it is challenging to pinpoint islands of stability. The Irish Government has recently announced a new trade and investment Strategy for Ireland namely “Value for Ireland, Values for the World”, to attract global investors.
The strategy contains 7 key priority actions with free international trade and investment being the main areas of focus. This new strategy will promote and enhance Ireland’s broader economic trade and investment ‘ecosystem’.
Ireland the ‘Celtic Tiger: From a Poor Country to One of the Richest in the EU
The Irish government recognizes that Ireland requires a dynamic and innovative business environment to allow entrepreneurs to thrive and to assist with attracting international investment opportunities. This has proven itself since the 2008 crisis that brought the Irish economy to its knees.
The Irish economy entered a severe recession in 2008 and then entered an economic depression in 2009. The Economic and Social Research Institute predicted an economic contraction of 14% by 2010. In the first quarter of 2009, GDP was down 8.5% from the same quarter the previous year, and GNP was down 12%.
The recession lasted 18 months and was officially over by June 2009. However, the effects on the overall economy were felt for much longer. The unemployment rate did not return to pre-recession levels until 2014, and it took until 2016 for median household incomes to recover.
Ireland is defined today as the ‘Celtic Tiger, with its remarkable ascent from a poor EU country to one of the richest, with employment and living standards for workers doubling in just two decades. Growth occurred in three distinct phases—the first two were based on sound economic policies but the third was associated with procyclical neoliberalism.
“Value for Ireland, Values for the World” – Irish New Trade Strategy
Despite significant headwinds, the Irish economy is set to perform robustly for the remainder of 2022, however, the pace of growth is set to moderate in 2023 as both macroeconomic uncertainty and inflationary pressures persist.
To place Ireland at the forefront of investment opportunities the Government has implemented the “value for Ireland, Values for the world strategy.”
The new Trade Strategy recognizes the role of the Irish government in addressing and prioritizing these areas to enhance Ireland’s competitiveness in the marketplace, attract Foreign Investment into Ireland, grow Irish-owned businesses and maintain a high standard of living for its citizens.
In conjunction with the “Value for Ireland, Values for the World” new Trade Strategy, an expert group on Global Value Chains and Supply Chains will be established and will be tasked with identifying and examining global supply chain opportunities and threats.
Ireland’s growing agility and adaptability to global supply opportunities and threats will be instrumental in retaining and attracting foreign investment in Ireland in the coming years. The Irish government also plans to introduce an annual “Trade Mission Week”. This initiative will see various Ministerial departments and State agencies in Ireland collaborating to enhance Ireland’s existing profile as an attractive destination for Foreign Investment.
This will serve to build on Ireland’s current strong international reputation as a leading supplier of global goods and services.
The Fundamentals of The New Strategy
This strategy plans to highlight the abundance of free trade agreements and tax treaties network to businesses, Ireland’s commitment to free trade, and the single market.
The EU has 41 free trade agreements spanning over 70 countries globally, the largest such network worldwide.
The Irish government estimates that almost half of the entire Irish workforce, approximately 1.3 million people, are employed because of international trade. Ireland is committing to promote the benefit of foreign trade agreements to Irish exporters and importers and ensuring access to Irish and EU information on how Irish companies can easily trade with partner countries.
Overall, the new Strategy and the initiatives outlined will provide further confirmation to businesses that Ireland is a world-leading trade environment where international investment opportunities can excel for many years to come.
- Dublin is ranked in 4th place overall as one of the lead “European cities of the future” according to the Financial Times’s FDI Intelligence
- Ireland ranks 5th in the EU in the 2021 edition of the Digital Economy and Society Index (DESI).
- Ireland is the 5th greenest country in MIT Technology Review’s Green Future Index
- Ireland is ranked 7th globally among 165 independent states according to Economist Intelligence’s Democracy Index 202.
- Ireland is ranked in the top 10 countries for gender equality
- Ireland has set a target to reduce carbon emissions by 50% by 2030
- Ireland has the highest level of STEM graduates per capita in the EU
- Ireland is the 13th happiest nation according to the UN-sponsored ‘World Happiness Report
- Ireland is ranked 24th among 190 economies for ease of doing business, according to the latest World Bank annual ratings
Number One in the World for:
- Real GDP growth
- Knowledge Diffusion & Knowledge Impact
Number One in Europe for:
- Paying business taxes
- Friendliest city in the EU (Galway)
- Artificial Intelligence
- Youngest population
- Fastest growing population
Number One in the Eurozone for:
- Quality of life
- Small European cities of the future (Cork City)