Strong export performance helps Ireland to top globalisation survey

Strong export performance and high levels of inward foreign direct investment (FDI) have made Ireland the most globalised western economy, according to a survey by Ernst & Young.

The survey says steps taken by Ireland’s policymakers during the economic crisis have helped improve the country’s globalisation ranking — which is boosted by the country now being ranked the most globalised economy in the areas of technology exchange and movement of finance and capital.

“Despite having been hit hard by the global recession, the research confirms that Ireland is, and is perceived to be, a leader in international trade,” said Mike McKerr, managing partner at Ernst & Young Ireland.

“This globalisation ranking demonstrates just how well positioned Ireland is to build on this brand and grow its fledgling trade links with the fast growing emerging economies of China and India.”

Mr McKerr said Ireland’s consistently strong performance in the category of openness to movement of capital and finance has benefited from increases in FDI flows in the past decade and a half, and he said that the country is likely to maintain its global attractiveness.

Ernst & Young forecasts 3.4% growth in global GDP this year, but predicts globalisation will continue to grow every year to 2015.

Medium-sized emerging markets are set to benefit most from this; but its survey also suggests that most business professionals foresee an increase in protectionism if the global economy suffers a double-dip recession.