February Trade & Investment Report
Key Economic Indicators
Indicators | 2009 | 2010 | 2011 (f) | 2012 (f) | Broad Trend |
Irish GDP Growth | -7.0% | -0.4% | 2.2% | 0.9% | 
|
US GDP Growth | -3.5% | 3.0% | 1.7% | - | 
|
Irish GNP Growth | -9.8% | 0.3% | 1.2% | -0.3% |
|
Irish Inflation (CPI) | -4.5% | -1% | 2.6% | 2.0% | 
|
US Inflation (CPI) | - | 2.7% | 2.5% | 2.5% |
|
Main ECB Interest Rates End of Year | 1.0% | 1.0% | 1.0% | - |
|
Irish Unemployment | 11.8% | 13.6% | 14.2% | 14.5% | 
|
Balance of Payments C/A | -€4.9b | €0.8b | €1.0b | €3.2b |
|
Markit Eurozone Composite PMI | 52.5 | 35.6 | 47.0 | 50.4 |
|
Source: ESRI Quarterly Commentary Autumn 2011, 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
Peter O'Neill Appointed President of the Chamber
Mr Peter O'Neill has been appointed President of the American Chamber of Commerce Ireland. Mr O'Neill is Managing Director of IBM Ireland, the global leader in advanced information technology, products, services and business consulting expertise.
Speaking at the launch of his Presidency, Mr O'Neill noted that Ireland continues to punch above its weight in attracting inward investment from US companies.
To hear Mr. O'Neill's launch address please view the latest edition of Chamber Conversations
Or to read the full press release click here
Joint Government-Industry ICT Action Plan Launched
Over 750 new places available on graduate skills conversion programmes as part of Joint Government - Industry ICT Action Plan.
Peter O'Neill, President of the Chamber said that the publication of the ICT Action Plan was an important initiative which will be brought to fruition by government, industry and academia collaborating to address this area of real opportunity for Ireland.
Read the report here (PDF)
IDA posts impressive 2011 results
2011 saw a strong performance in the level of foreign direct investment (FDI) won by Ireland. IDA client companies created over 13,000 new jobs in 2011, up 20% on the previous year's level of 10,897, increasing the total number of those employed directly by IDA client companies to almost 146,000.
There was an overall increase of 17% in the number of investments from IDA client companies in 2011 and despite the current global economic situation and a strong increase in international competition, there was a record number of 148 new investments won during the year across all industry segments. Most encouragingly, there was an increase of 30% in the number of companies investing in Ireland for the first time. 74% of investments came from US compaines.
Source: IDA Ireland
UN Figures Show FDI Increase in 2011
Despite pressures in the global economy, global foreign direct investment (FDI) inflows rose by 17 per cent in 2011, to $1.5 trillion, surpassing their pre-crisis average, according to UNCTAD's estimates in the recent Global Investment Trends Monitor.
According to the latest estimates, FDI inflows increased in all major economic groupings developed: developing and transition economies. Developing and transition economies continued to account for half of global FDI in 2011 as their inflows reached a new record high, at an estimated $755 billion, driven mainly by robust greenfield investments.
Source: UNCTAD
GDP Growth to Remain Positive
Latest figures from the CSO show that the value of exports in November 2011 (€8,511m) increased by 9% from November 2010The figures for the first ten months of 2011 compared with the same period of 2010 Exports increased by 4% to €76,978m, while, exports of Organic chemicals increased by 11% or €1,652m, Medical and pharmaceutical products by 8% or €1,607m and Dairy products by 28% or €326m.
Meanwhile The Irish Exporters Association have stated that exports for the full year increased by just under 5% to €171 billion which represents a seubstantial increase of €8 billion in the year.
Source: CSO & Irish Exporters Association
Improvements in Exchequer Funding
The Department of Finance has said that the Exchequer deficit in January 2012 was €394m compared to €483m last January. Increased tax and non-tax revenues and lower net voted expenditure were largely offset by higher debt servicing costs and higher non-voted capital expenditure. Tax receipts were up 17% with a boost from timing of corporation tax.
Source: Finfacts
Improvements in Eurozone manufacturing figures
The Eurozone's manufacturing and services sectors recovered in January 2012 following several months of contraction according to a report today. However, employment fell for the first time since the spring of 2010. Output rose strongly in Germany.
The Markit Eurozone PMI (Purchasing Managers' Index) Composite Output Index moved into positive territory for the first time in five months in January, according to the preliminary ‘flash’ reading which is based on around 85% of usual monthly replies. The index rose for the third month running, up from 48.3 in December to a five-month high of 50.4.
Source Finfacts
US Jobs Figures Better Than Expected
Official figures show that the US economy created more jobs than expected in January. 243,000 jobs were added, the biggest increase since April last year. The country's unemployment rate also dropped to a near three-year low of 8.3%, indicating that growth in the final quarter of last year carried on into early 2012.
Source: RTE.ie
Eurozone Public Sector Debt Eases in Q3
Public sector debt across the euro zone edged down to 87.4% of gross domestic product (GDP) in the third quarter of 2011, the European Union. The total amount of debt amassed by the 17 EU members of the currency area was €8.191 trillion, a €25 billion increase in absolute terms on the figure for the previous three months but a slight drop as a percentage of GDP, from 87.7%.
Germany was the biggest debtor, with €2.089 trillion outstanding at the end of September 2011, followed by Italy on €1.884 trillion and then France at €1.689 trillion. There were no surprises among those with the highest debt-to-income ratios: Greece at 159.1%, Italy at 119.6%, Portugal 110.1% and Ireland 104.9%.
Source: RTE.ie
National Competitiveness Council Report Published
The National Competitiveness Council published its annual policy report, Ireland’s Competitiveness Challenge 2011 which outlines policies to address weaknesses in Ireland’s competitiveness performance. The Council stressed the importance of maximising Ireland’s competitiveness and that swift action is needed – particularly in light of ongoing international economic uncertainty and the growing risk of further downturns in some of Ireland’s main markets.
Full Report
Major US Investment Announcements
Major Expansion for Allergan in Mayo
Allergan Pharmaceuticals Ireland is to invest $350 million in its Westport operation to expand both its development and manufacturing capabilities. The expansion will result in the creation of approximately 200 new jobs at the site over the next four years and an estimated 250 indirect jobs locally, during the construction period.
Cook Invest in R&D
Cook Medical, the largest privately owned medical device company in the world, is to invest up to €16.5m over four years creating highly skilled positions in Research and Development activities at its Limerick site.
Source: IDA Ireland
Workday to create 100 jobs in Dublin
Workday, the leader in SaaS-based enterprise solutions for global human resources (HR), payroll, and financial management, plans to expand its EMEA presence by creating 100 new positions in Dublin over the next three years.
Source: IDA Ireland
CETRA Establish Service Centre in Limerick
CETRA, the US headquartered language translation company, is establishing its European Service Centre in Limerick. CETRA plans to create 20 jobs in Limerick to better serve their existing European clients and further grow its EMEA client base. CETRA Ireland staff will include management, administration, project managers and sales staff. The company will initially locate in the Limerick Institute of Technology Acceleration Centre. The company will begin recruitment for initial positions immediately.