Economy
Economy
The economy of Ireland has been traditionally agricultural. Since the mid-1950s, however, the country's industrial base has expanded, and now mining, manufacturing, construction, and public utilities account for approximately 36 percent of the gross domestic product, while agriculture accounts for only about 10 percent. Private enterprise operates in most sectors of the economy. The gross domestic product in 1999 was $93.4 billion.
Agriculture
Some 20 percent of the total area of Ireland is cultivated, and much of the rest is devoted to pasture. The agricultural enterprise producing the most income is animal husbandry. In 2000 livestock included 6.7 million cattle, 5.4 million sheep, 1.8 million hogs, and 50,000 horses. Poultry production is also important. The principal field crops are wheat, barley, oats, and potatoes. Among other important crops are hay, turnips, and sugar beets. The best farmlands are found in the east and southeast.
Forestry and Fishing
The government of Ireland has undertaken extensive schemes of reforestation in an effort to reduce the country's dependence on timber imports and to provide raw material for new paper mills and related industries. In 2000 forests occupied 10 percent of Ireland's total land area; the output of timber was 2.5 million cubic meters (89 million cubic feet).
The fishing industry, which has traditionally been underdeveloped, is expanding; the catch in 1997 was 329,496 metric tons. Deep-sea catches include herring, cod, mackerel, whiting, and plaice. Crustaceans, particularly lobsters, crawfish, and prawns, and mollusks such as oysters and periwinkles, are plentiful in coastal waters and form the bulk of the country's seafood exports. The inland rivers and lakes provide excellent fishing for salmon, trout, eel, and several varieties of coarse fish.
Mining
Although mining plays a relatively minor role in the Irish economy, discoveries of new deposits in recent decades have led to a considerable expansion of mineral production.
Mineral output in 1999 included 226,000 metric tons of zinc and 45,000 metric tons of lead. Ireland is one of the leading exporters of lead and zinc in Europe. Natural gas is extracted off the southwestern coast; yearly output in 1999 was 1.4 billion cubic meters (50 billion cubic feet). Peat is dug in large quantities for domestic and industrial fuel and also for horticultural purposes; output in 1996 was 6.7 million metric tons.
Manufacturing
Ireland has diversified manufacturing, most of it developed since 1930. Among the food-processing industries, the most important are meat packing, brewing and distilling, grain milling, sugar refining, and the manufacture of dairy products, margarine, confections, and jam. Other important manufactured articles include office machinery and data-processing equipment; electrical machinery; tobacco products; woolen and worsted goods; clothing; cement; furniture; soap; candles; building materials; footwear; cotton, rayon, and linen textiles; hosiery; paper; leather; machinery; refined petroleum; and chemicals.
Currency and Banking
The monetary unit of Ireland is the single currency of the European Union (EU), the euro (1.07 euros equal U.S. $1; 1999 average). Ireland is among 12 EU member states to adopt the euro. The euro was introduced on January 1, 1999, for electronic transfers and accounting purposes only, and Ireland's national currency, the Irish pound, was used for other purposes. On January 1, 2002, euro-denominated coins and bills went into circulation, and the Irish pound ceased to be legal tender.
As a participant in the single currency, Ireland must follow economic policies established by the European Central Bank (ECB). The ECB is located in Frankfurt, Germany, and is responsible for all EU monetary policies, which include setting interest rates and regulating the money supply. On January 1, 1999, control over Irish monetary policy was transferred from the Central Bank of Ireland to the ECB. After the transfer, the Central Bank of Ireland joined the national banks of the other EU countries that adopted the euro as part of the European System of Central Banks (ESCB).
Commerce and Trade
Dublin and Cork are the manufacturing, financial, and commercial centers of Ireland. Dublin is the most important seaport; Cork is the main port for transatlantic passenger travel. Other significant ports include Dún Laoghaire, Waterford, Rosslare, and Limerick. Ireland became a member of the European Community (now called the European Union) in 1973, thus expanding the market for the country's important agricultural exports. Imports in 1999 totaled $46 billion, and exports, including reexports, $70.3 billion. The major trading partners of Ireland include the United Kingdom, Germany, the United States, France, and Japan. The most important exports include electrical and electronic equipment, livestock, meat, dairy products, chemicals, and textiles and clothing; about two-thirds of all exports are to the countries of the European Union. Imports are primarily machinery, transport equipment, petroleum and petroleum products, chemicals, cereals and foodstuffs, textiles, and iron and steel.
Tourism has been effectively promoted and has increased steadily in importance. In 1999, some 6.5 million tourists spent $2.2 billion in Ireland.
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