Ireland top for eurozone growth

THE Irish economy grew by 5.5% in 2004, the highest rate of growth since 2000, according to preliminary figures by the Central Statistics Office.

The results show that Ireland has sustained its status as the fastest growing country in the eurozone 12 over nine of the past 10 years.

The CSO said the figure was based on gross national product (GNP), which is regarded as the most accurate measurement of economic performance as it excludes profits made by foreign companies.

The preliminary figures show the corresponding growth rate in gross domestic product (GDP) for the same period was 4.9%.

According to the study, the economy expanded 2% in the fourth quarter from the previous three months, driven by construction and investment by companies such as Intel Corporation, the world’s largest computer chip manufacturer.

Ireland remains one of the most successful EU states at attracting foreign investment, with direct inward investment flows representing 17% of GDP in 2003. The corresponding eurozone figure was just 1.7%.

Ireland’s international trade competitiveness has deteriorated since 2000, mainly due to higher inflation and an appreciating euro. Cumulative inflation in Ireland from 2000-2004 was 16% compared with an EU 25 average of 9%.

Over the same period, the euro increased in value against the dollar by 17%.

Builders erected a record number of homes last year to meet demand, after the population climbed to the highest in 130 years.