By Boyce Fitzpatrick

The Irish market is expected to import a larger amount of needed products in 1992 than in 1991. American firms can meet this demand and increase sales as the economy expands this year and next.

U.S. exports 1991--$2.7 billion U.S. imports 1991--$2.0 billion

After two years of rapid growth, a competitive industry, and strong export performance, the Irish economy leveled off in 1991. Ireland's small, open economy was adversely affected by the downturn in the economies of its major trading partners, most notably the United Kingdom. The Irish slowdown has been marked by a drop in consumer demand and residential construction. Unemployment has risen to 20 percent, making job creation a key issue in future government programs.

With welfare payments rising at a time revenues were sagging, an additional burden was placed on the national budget. Despite this falloff in 1991, the Irish economy grew 1.3 percent in real terms, with inflation at only 3.2 percent.

The Irish economy is expected to strengthen in 1992 with real GNP growth in the 3.5-4 percent range. Inflation is projected to remain relatively stable at a low 3.5 percent, and unemployment to level off or decline slightly as the number of workers returning to Ireland tapers off. The international competitiveness of Irish firms is expected to remain strong, resulting in a significant trade surplus for 1992.

The international business community is finding Ireland, with its young, educated workforce, ease of doing business, and generous investment incentives, as a good place to establish operations. There are currently some 1,000 foreign firms in Ireland--of which 380 are American, producing for the European market.

American firms will find a wide range of opportunities in Ireland--from sales to joint ventures, from licensing to direct investment. Best prospects are in such sectors as electronics, medical equipment, food processing and packaging, consumer goods oriented to a young population, process controls, hotel and restaurant equipment, and industrial equipment, as well as many others.

With current exchange rates, American products are highly competitive. In addition, an Irish contact can offer an excellent entree to the European Community market of 380 million consumers. To assist in making these contacts, the Commerce Department is sponsoring a U.S./Ireland Business Partnership Conference in Dublin and Belfast June 22-26. This will present an ideal time to make contact with carefully selected Irish companies. U.S. and Irish organizations will be interested in helping you achieve your commercial goals in Europe.

To participate in the U.S./Ireland Business Partnership Conference, or to obtain information on other opportunities in Ireland, contact the Commerce Department's Ireland Desk at (202) 482-2177.

Source: International Trade Administration, Business America Magazine