Ideas and knowledge have transformed business and industry and have been crucial in the development of the Irish economy. The Irish Government's economic policies are directed towards the creation of a stable economic environment that is supportive of the needs of business. Ireland's economic growth rates in recent years have consistently been among the highest of the OECD countries. The forces of growth are firmly rooted in Ireland's economy, through favourable demographics, increasing investments in education and a high rate of technology-oriented investments.

Real GDP Growth

Country	2005	2006	2007 (F)	2008 (F)
Ireland	5.5%	6.1%	5.4%	3.9%
UK	1.9%	2.8%	2.7%	2.5%
France	1.2%	2.1%	2.2%	2.2%
Germany	1.1%	3.0%	2.9%	2.2%
Netherlands	1.5%	2.9%	2.9%	2.9%
Spain	3.5%	3.9%	3.6%	2.7%
Portugal	0.5%	1.3%	1.8%	2.0%
Switzerland	1.9%	2.7%	2.7%	2.2%
USA	3.2%	3.3%	2.1%	2.5%
Japan	1.9%	2.2%	2.4%	2.1%
Euro Area	1.5%	2.8%	2.7%	2.3%

Source - ESRI Quarterly Economic Commentary, Spring 2007 & OECD Economic Outlook No. 81, May 2007

Ireland is a small, open, trade-dependent economy and is one of the fastest growing economies in the developed world.  Its openness is reflected both in the international mobility of its labour and capital reflected by strong migrationary flows and high levels of foreign direct investment.

The strong performance of the economy is best exemplified by employment growth of 4.4% last year (2006), or 86,700 net job increases, with an average rate of unemployment of 4.4%. In recent decades, the Irish economy has transformed from being agrarian and traditional manufacturing based to one increasingly based on the high technology and in internationally traded service sectors.