Economic Assessment : Gdp Size And Growth

946 Words Dec 5th, 2015 4 Pages
Economic Assessment GDP Size and Growth
Ireland’s GDP has increased from $218.5 billion in 2010 to $245.9 billion in 2014. Per Capita GDP has also increased over the last five years, from $46,425 to $49,360 (Ireland GDP | 1960-2015, 2015). Despite overall growth, both GDP and per capita GDP experienced low growth from 2011-2013, and even negative growth in 2012. This is explained by the tight fiscal policy maintained by Ireland’s government during this time.

In addition to GDP growth, an interesting indicator of Ireland’s dependence on trade is its exports as a percentage of GDP. Total exports accumulate to 107.8% of Ireland’s GDP in 2014 (Ireland GDP FOrecast, 2015). One of the primary reasons for this is Ireland’s attractive corporate tax rate attracting foreign multinationals to headquarter there as a tax shelter. Ireland’s exports strong also because of the gradual development of mining operations within the country.
GDP growth has reflected the economic environment in Ireland as it has attempted to recover from the global financial crisis GDP growth had a major drop in 2012, dipping down to -0.3% and continuing sluggishly into 2013 at a rate of 0.2%. However, there was a jump in 2014, as Ireland recovered, with GDP growth rising to 4.8% (GDP Growth (annual%), 2015).
Inflation has been reduced in the past five years, with it peaking at 2.45% in 2011. Since then, it has drastically decreased, reaching a rate of 0.30% deflation in 2014. This can be…
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