Ireland: GDP per capita compared to EU and U.S. 1973-2000

For most of the 20^th century, Ireland stood out as one of the poorest countries in Western Europe, not experience the same post-war boom in prosperity that was felt by virtually all other countries in the region. At the onset of the 1973-1975 Recession, Ireland's GDP per capita was less than 60 percent of GDP per capita in the European Union and less than a quarter of GDP per capita in the U.S.

Catching up in the 1980s

By the 1980s, a wave of foreign investment saw Ireland's export sector grow exponentially, and between 1975 and 1990, Ireland had the second-fastest growth of exports in the world (behind Japan). Additionally, as Ireland joined the European Communities in 1973, it became more integrated into the European economy; before 1973, around three-quarters of Ireland's exports went to the United Kingdom, but this fell to one-third by the 1990s. Ireland's period of industrialization was relatively short in comparison to its neighbors, as it transitioned from an agriculture-based economy to a producer of high-tech products and services. Ireland's low tax rate and other incentives also attracted many American tech companies in the 1980s, such as Apple, Intel, and Microsoft, who were keen on establishing a presence in the European Union.

The Celtic Tiger

Named after the Four Asian Tigers (Hong Kong, Singapore, South Korea, and Taiwan), which experienced rapid economic growth in the 1970s and 1980s, the period of prosperity between the 1990s and 2000s in Ireland has been dubbed the "Celtic Tiger." Over this time, Ireland's GDP per capita grew to exceed the average in the EU by 10 percent in 2000, and it would eventually surpass that of the U.S. in 2003. Ireland was severely impacted by the financial crisis of 2008 due to the instability of its property sector and extensive lending by banks, and it was the first European economy to go into recession. By the late 2010s, most sectors of the economy had returned to pre-recession levels, and today, Ireland's GDP per capita remains among the top in the world, second in the EU only to Luxembourg.