Investment & Economic Update. November 2010

Transcription

1 Investment & Economic Update November 2010

2 Summary Returning to Growth Growth predicted for 2011 (GDP +2.25%) Manageable debt ratio 12.5% Corporation Tax Rate Guaranteed Robust Export Performance Growing FDI Community Competitiveness improving significantly Capital Investments continuing

3 Transformation Ireland s s Economy GDP per Capita 100% increase Debt:GDP 88% 97% US Investment $11b $165b Exports 35b 156b Employment 1.3m 1.9m

4 Irish Economy Today GDP GNP Inflation Exports BoP* % -0.25% +2.25% -11.4% -1.50% +2 % -4.5% -0.5% +1.75% -4.1% +5% +4.75% -4.9% 0% +2.25% *Balance of Payments (Current % of GNP) Exports continue to perform robustly Consumption and investment levels stabilising Growth predicted for 2011

5 Durable Sectors ICT 7 of the world s top 10 companies Pharmaceuticals 16 of the world s top 20 Medical Devices 140 major companies Financial Services 50% of the world s top banks

6 ICT SECTOR

7 Pharmaceutical Sector

8 Med Tech Sector

9 Financial Services Sectors

10 Government Finances Government introducing 4 year deficit reduction plan EU approved Stability plan Exchequer fully funded to July 2011 Debt/GDP ratio in line with EU Average Bank support accounted for in 2010 is spread over 10 years The debt rate is manageable & not expected to be greater than the early 1990s.

11 US Ireland Investment Relationship Ireland in the US 1,300 Business Operations $34 Billion invested 82,000 jobs US in Ireland 600 Business Operations $165 Billion invested 100,000 jobs Bilateral Ireland/US Trade of 27 billion

12 2010 Announcements

13 Competitiveness Realigning our costs Competitiveness Property costs falling sharply. Rent down 45% Dublin has fallen from 20 th to 33 rd in terms of office occupancy costs (DTZ) Irish labour costs becoming significantly more competitive Salaries for new employees down between 5 % and 22% ( Irishjobs.ie) Versus the EU 13% improvement in wage costs Cost of Living reduced Consumer Prices fell 1.7% in 2009.

14 Competitive Tax Jurisdiction Our 12½% corporation tax rate remains and will continue to remain. Finance Minister Brian Lenihan issued a statement on behalf of the Irish Government re-affirming Ireland's long-term commitment to the 12.5% corporate tax rate as "a cornerstone of Irish industrial policy. 60 International Tax Treaties EU & OECD approved

15 Investing in Our Future New Nationwide Highway Network of 740 Km New 72,000 M 2 International Airport Terminal First two European airports with full US Customs & Border Clearance Rail stock doubled & 650 Km of new tracks laid New state of the art Convention Centre- 8,000 capacity Two Dublin Metro lines planned and committed too ICT for Schools Programme- 60,000+ new computers

16 Global Endorsements Ireland faced a significant competitiveness disadvantage in 2009, but its real effective exchange rate is currently viewed broadly in line with medium-term fundamentals. This improvement was associated with a deep recession, but Ireland has recently returned to relatively rapid growth IMF Sept 2010 According to the 2010 Global Location Trends report by IBM Ireland is the top destination globally for jobs by inward investment per capita. A European Commission study of third level education 2010 stated that International recruiters believe that Ireland produces the most highly-employable graduates in the world. According to the 2010 KOF Globalisation Index, Ireland is ranked as the second most economically globalised country in the world. Ireland is among the world s most competitive locations for R&D investment, and the most competitive in Europe according to a major study by accounting and consulting firm, Mazars. Ireland has been ranked 8th in the world for quality of research in Materials Science over the past decade, according to Thomson Reuters.

17 Global Endorsements I firmly believe in Ireland s ability to recover from our current difficulties...there is not a day that goes by that when I go to work and I am not amazed great talent this country has. -Lionel Alexander President American Chamber of Commerce Ireland

18 Why Ireland? Flexibility of labour law versus continental Europe Skills Availability with business and technical knowledge Multinational Experience Ireland Productivity and strong work ethic of Irish staff Adaptability of Irish staff when faced with new challenges Pro-business Environment excellent IP protection and low CTR Ease of global communications (language & time difference and telecoms) Ireland ahead of the curve immediate response to banking & global crisis Ease of Doing Business Excellent multilingual availability National Strategy & foresight Green agenda & Convergence Constant Reinvestment of Multinational Clients

19 Conclusions Ireland is returning to growth Led by durable exporting industries Public Finances are secure Costs are falling and productivity increasing FDI continues to grow 12.5% tax rate guaranteed Capital Investments producing results Ireland is open for business

20 For Further Information American Chamber of Commerce Ireland +353 (0) Disclaimer: The information contained in this document is meant for general information purposes only. The information contained in these notes is not guaranteed, although the American Chamber has aimed to ensure its accuracy. Any expressions of opinion are subject to change without notice.