The growth of Ireland during the Pandemic
Source: Dorset College Magazine, Issue 3, September 2021
Ireland was one of the few countries in the world that managed to grow during the Coronavirus crisis. This could be due to the young well-educated workforce which adapted very well to the demands during Covid-19.
An increase of 6% in exports boosted Ireland's economy and was due to the activity of the multinational pharmaceutical and technological companies operating in the country. Ireland has recorded an incredible 3.4% increase in the gross domestic product (GDP) by 2020, thanks to the activity of several multinationals that are in the country, despite the profound economic impact of the pandemic, according to Finance Minister Paschal Donohoe.
However, it is important to note a few points.
Without the effect of the multinationals, Ireland's GDP fell by 5.4% last year, due to the impact of the health crisis on businesses and families. Consumer spending fell by 9%, double the 2009 drop during the international financial crisis.
The figures "show once again the dual economic impact of the pandemic, affecting domestic activities," Donohoe indicated. But at the same time, multinational pharma and technology companies were supported "by strong sales of immunology-related drugs, Covid- related products and moves to telecommuting," according to the minister.
It is worth noting that the Irish government has put a robust economic stimulus plan into action, with financial aid to businesses as well as to the entire population to the tune of around 5 billion euros. This injection of capital ensured that the economy would not stagnate, favouring household consumption, the maintenance of jobs and the generation of income.
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