May Trade & Investment Report
Key Economic Indicators
Key Economic Indicatorsi
Indicators | 2008 | 2009 | 2010 (f) | 2011 (f) | Broad Trend |
Irish GDP Growth | -3.0% | -7.1% | -0.5% | 2.5% | 
|
US GDP Growth | - | -2.6% | 2.4% | 2.6% |
|
Irish GNP Growth | -2.8% | -11.3% | 0% | 2.75% |
|
Irish Inflation (CPI) | 4.1% | -4.5% | 0.25% | 1.75% | 
|
US Inflation (CPI) | - | 0.2% | 2.0% | 2.3% | 
|
Main ECB Interest Rates End of Year | 2.50% | 1.0% | 1.0% | 1.75% |
|
US Interest Rates End of Year | 0%-0.25% | 0%-0.25% | 0%-0.25% | - |
|
Irish Unemployment | 6.3% | 11.8% | 13.75% | 13% |
|
Balance of Payments C/A | -€9.4b | -€4.9m | €0.7b | €2.0b |
|
Markit Eurozone Composite PMI | 52.5 | 35.6 | 57.3 | - |
|
Source: ESRI Quarterly Commentary Spring 2010, unless stated
Arrow Direction indicates direction of trend;arrow colour indicates whether trends are perceived as positive (Green) or negative (red).
(f) = forecast
Economic News
AmCham - Time for Action on Task Force Report
Ireland runs the risk of missing out on future opportunities if it fails to implement urgently the recommendations of the Innovation Taskforce according to Lionel Alexander, President of the American Chamber. Speaking to a meeting of the Chamber members, Mr Alexander, a member of the Government's Innovation Taskforce, said that swift action was required or Ireland will lose ground on its competitors.
"The shelves of Government are creaking with reports and as a member of the Innovation Taskforce I do not want our report to be left on the shelf gathering dust like so many before it. I am calling on the Government to put its cards on the table and to outline how and when it plans to implement the recommendations of the Taskforce", he said. "The Report provides a wide range of proposals. It is imperative that Government target both the immediate and long term recommendations."
Full Story
EU Predicts Large 2011 Growth for Ireland
The EU Commission has forecast that the Irish economy will grow by 3% next year. This is one of the highest levels of growth forecast by the Commission and represents an upward revision from a previous forecast for a 1.4% fall. The Commission also estimate that the Eurozone in general will see growth of close to 1% this year.
Source: rte.ie
Sharp Rise in Irish Manufacturing
March data signalled that operating conditions in the Irish manufacturing sector improved for the first time in twenty-eight months. Output rose sharply, as did new business, driven by series-record new export order growth. The seasonally adjusted NCB Purchasing Managers' Index® (PMI®) - an indicator designed to provide a single figure measure of the health of the manufacturing industry - rose strongly to 53.0 in March, from 48.6 in February.
The reading marked the greatest improvement in business conditions since September 2007. Irish manufacturing output increased considerably in March, ending a three-month sequence of contraction. Moreover, the rate of expansion was the fastest in forty-five months. The rise was driven by higher new business.
New orders grew for the first time in three months, and at the steepest pace since September 2007. Panellists indicated that demand had strengthened in domestic as well as foreign markets. New export orders increased more quickly than total new business. Furthermore, new orders from overseas rose at the fastest pace in the series history. The steep rise in new business at Irish manufacturers led to a slight build up of work-in-hand in March.
Source: Irishpurchasing.com
Export Figures 'Encouraging'
The Minister for Trade and Commerce, Billy Kelleher TD, has described as ‘encouraging' new figures showing that our exports are remaining stable while the value of imports have increased. The preliminary figures for February 2010 show that, relative to January 2010, our exports remained stable at just under €7 billion while the value of imports increased by 3% to just over €3.5 billion. The figures also show a positive trend in our exports from December 2009. Medical and pharmaceutical exports rose by 18% and exports to the US and China also showed healthy increases.
Source: Department of Enterprise, Trade & Innovation
IMF - Global Recovery Faster than Expected
The International Monetary Fund (IMF) says the world economy is recovering from the global crisis better than expected. In 2010, world output is expected to rise by about 4.25 per cent following a ½ per cent contraction in 2009. Economies that are off to a strong start are likely to remain in the lead, as growth in others is held back by lasting damage to financial sectors and household balance sheets.
Source: Finfacts
Global Trade Strengthened
Global trade volumes continued to grow in the fourth quarter of 2009 according to the OECD, albeit at a slower pace than in the third quarter. Recent monthly data on merchandise trade values confirm the continued recovery into early 2010. However, both volumes and values of trade remain below their pre-crisis levels of mid-2008.
In the OECD area as a whole, the value of trade in services also rose in the fourth quarter of 2009, with exports increasing by 6.1% and imports by 4.3% from the previous quarter, although both exports and imports of services rose less rapidly than exports and imports of goods.
Source: OECD
Irish Service Index Edges Closer to Growth
The NCB Services Purchasing Managers' Index inched closer to a return to growth in March, recording its highest level in more than a year. The index rose to 49.6 from 48.8 a month before, the best reading since January 2008, but new orders continued to contract as domestic demand underperformed. NCB blamed the decline on "fragile" economic conditions and intense competition. Sentiment at Irish service providers was also improved in March, as predicted improvements in wider economic conditions, and subsequent rises in new orders had a positive effect.
Source: Irish Times
Government Reach Deal with Public Sector Unions
Public Service management and unions have reached agreement on a comprehensive agenda for Public Service transformation and on a framework for public service pay determination over the period to 2014. The agreement covers a range of important transformation issues across all of the main sectors of the Public Service including Health, Education, Local Government, Justice, Defence, the Civil Service and State Agencies. It includes a joint mechanism to support implementation and it also addresses the issue of pay determination in the period to 2014.
Source: Department of the Taoiseach
Dublin becoming 'Internet Capital of Europe'
Now the location of choice for international headquarters of companies such as Google, Facebook, LinkedIn, eBay and Gala Networks, Dublin is on its way to becoming the internet capital of Europe.eBay, which already employs more than 1,600 people at its Blanchardstown site together with PayPal, its online payment system, revealed plans to create 150 new permanent positions in customer service, personal account management and process enhancement. This was followed by news of 200 new jobs from IBM at its first-ever IBM Smarter Cities Technology Centre, which aims to revolutionise how cities provide services such as water and transport. This project will have internet technology at its core.
It then emerged that social networking service LinkedIn is setting up its international headquarters in Dublin. The jobs are expected to include a variety of business and technology roles, including positions in sales, marketing, finance and customer service. The company says it will manage its international expansion from Dublin, working with teams in London and the Netherlands.
Source: Silicon Republic
Major US Investment Announcements
UTC Announce R&D Venture in Cork
United Technologies Corporation is to establish a unique energy and security research centre in Ireland creating 37 new jobs over the next four years through a €15 million investment. The investment is supported by the Irish Government through IDA Ireland.The proposed research agenda is based on two main research themes - energy and security systems. The centre will begin in the Tyndall National Institute, UCC, Cork. United Technologies Corporation, which is the 17th largest manufacturer in the US, is a global provider of high technology products and services to the building systems and aerospace industries.
Source: ida.ie
GE Joins Intel & Irish Universities for R&D Venture
The TRIL (Technology Research for Independent Living) Centre, Ireland has announced a new industry partner, GE Healthcare. TRIL is a groundbreaking research initiative, founded in January 2007 by Intel Corporation and IDA Ireland, to explore the physical, cognitive and social consequences of ageing and design technologies to help address them. The addition of GE Healthcare as an industry partner will help TRIL to extend and expand its research programme. GE joins the TRIL Centre as its second industry partner for 2010, alongside co-founder Intel and academic partners University College Dublin, Trinity College Dublin and NUI Galway. GE Healthcare is investing $3 million in the TRIL Centre.
Source: IDA
IBM Seek Redundancies
IBM says it has entered a process of consultation with employees seeking 200 voluntary redundancies. A spokesman for the company said that staff will be offered voluntary redundancies as well as opportunties to work elsewhere in the company. IBM is hiring people to work in its software and sales sectors here. This follows last month's news that it was opening a new research centre in Mulhuddart in Dublin which will create over 200 jobs.
Source: rte.ie
Reports of Interest Released last Month
ESRI Quarterly Commentary Spring 2010 Summary (PDF)
IMF World Economic Outlooks
Ireland- Adjusting for Recovery: EU Commission (PDF)