Overview

Overview of Irish Economy

Key Business Sectors

Skills requirements

Fastest growth rates in the EU…

…lead to falling unemployment

…increasing tax revenue

Over reliance on building and construction left Ireland exposed to the property crash.

Resulting recession saw collapse of government revenue and increasing expenditure…

A rise in government bond yields above 8% lead to a request for financial assistance to the trokia

Ireland has already delivered over €20 billion in austerity - total adjustment amounts to over 20% of 2010 GDP

Gap between revenue and expenditure to close further

Dramatic improvement in unit labour costs

The 2012 World Bank Doing Business Report shows that Ireland has one of the best regulatory environments

Start a business

Investor protection

Paying taxes Total rank

Ireland 13 5 5 10

Germany 98 97 89 19

France 25 79 58 29

Portugal 26 46 78 30

Spain 133 97 48 44

Italy 77 65 134 87

Greece 135 155 83 100

Source: World Bank.

Ireland: why the outlook is bright

Ireland has the capacity for export-led growth Firms have responded to the downturn by cutting costs

and improving productivity Ireland’s fundamental strengths remain… …the business environment is good… …and Irish firms are confident in their outlook… …which is why market confidence in Ireland is beginning to

return

Ireland can have an export-led recovery because net exports make a substantial contribution to GDP

IBEC research shows that the vast majority of companies expect to grow turnover in the next five years

Source: IBEC.

Employment still higher than a decade ago

Ireland, Employment, Total

Source: Reuters EcoWin

98 99 00 01 02 03 04 05 06 07 08 09 10 11

Pe

rso

n (

mil

lio

ns

)

1.4

1.5

1.6

1.7

1.8

1.9

2.0

2.1

2.2

Q4 2011 –First employment increase since Q4 2007

Source: Reuters EcoWin

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

07 08 09 10 11

Pers

on

-80000

-70000

-60000

-50000

-40000

-30000

-20000

-10000

0

10000

20000

30000

The base of indigenous companies is strong

Half of the medical technology companies are Irish-owned There is a vibrant software sector exporting mainly to the

UK and the US. Ireland has a natural competitive advantage in the food

and drinks sector. Indigenous manufacturers are becoming increasingly

sophisticated. Thanks to competitive adjustment achieved to date,

Ireland is pricing itself back into international markets.

Key Sectors for the Future

Medical Devices Pharmaceutical Finance Food & Drink ICT

ICT - Industry Overview

All of the top 10 technology companies are present in Ireland

Current employment: 84,000+

Employment growth: 6% in 2009; 4% in 2010

Jobs announcements: 3,500 in 2010; over 4,000 in 2011

2,700+ jobs announced to date in 2012

5 of the top 10 exporters are technology companies

ICT

Medical Devices Sector

11 of top 13 Med Tech Companies have base in Ireland

200+ companies in Ireland (100 are irish owned)

Employs over 25,000 people

Irelands exports are €7.3 bn annually

Ireland exports medical technology to 95 of the top 100 countries world wide

Almost 60% of companies expect to increase their employment numbers in 2012.

Medical Devices Sector

Pharmaceutical Industry

8 of the top 10 companies are located here

12 out of the top 25 selling drugs are produced in Ireland

Exports €50.8 billion in 2010 

Employment in the sector has grown from 5,200 in 1988 to over 25,000 in 2010.

Pharmaceutical Industry

Food and Drink Industry

46,000 direct and 60,000 indirect employees – 7.5% total employment

120,000 farmers output (€6.2 bn)

Exports in 2011 €9.0 bn

Food and Drink Industry

Financial Services Sector

Growth in international industry offsetting smaller domestic institutions

Targeting growth of 10,000 employees over next 5

years

Leading position across sectors

Building profile and capacity in new areas

Financial Services Sector

Skill Requirements

All occupations are becoming more knowledge based

Education, training, and skills development is crucial for the future of the Irish economy and society

The population is among the best educated in the world

Source: OECD.

Changing Skills Requirements

There is likely to be demand for an:

• Increasing Breadth of Knowledge

• Rising Qualification and Technical Skill Requirements

• Importance of Continuing Learning

• Interpersonal Skills

• Innovation / Creativity

Specific Skills

S.T.E.M.Science / Technology

Engineering

Mathematics

Languages

The business community’s ambition for Ireland

Ireland today

Our ambition for Ireland

Growth of double EU average

Top 20 for prosperity of EU’s 230 regions

Top 5 OECD Better Life countries

Our ambition for Ireland

Export share of indigenous companies

2 million people working by 2020

Balanced economic growth

Our ambition for Ireland

Best country in the world to do business

Why we believe

We have form

We have the capacity

There are no limits

Restoring domestic demand

Keeping Ireland strong in Europe

Supporting job creation

Delivering world-class public services

How we can

Challenges

Global economy

Ourselves

Debt burden

What if we don’t?

StagnationAusterity

Missed Opportunity

Lost Generation

GrowthProsperity

PossibilityNew

Beginning

Success is….

www.ibec.ie/recovery

twitter: @ibec_econ

linkedin: http://www.linkedin.com/groups/Drivingirelandsrecovery

youtube: http://www.youtube.com/user/IBECInformation

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The business community’s ambition for Ireland