Shortly after Ireland achieved annexation from England, it entered a period of significant economic growth and prosperity. Dubbed the “Celtic Tiger”, this period of wealth lasted from 1995 to about 2007 and was the result of foreign investments, primarily within the United States and the European Union. The Irish economy grew at an annual rate of 9.4% between 1995 to 2000, and between 1987 and 2007, Ireland’s gross domestic product grew by 229%. The name “Celtic Tiger”, coined by Kevin Gardiner in 1994, is a reference to the Four Asian Tigers, a nickname for four Asian nations, Singapore, Hong Kong, Taiwan, and South Korea, that had had economic booms as well, theirs taking place in the 1950s and 1960s. This was a way to solidify the financial success of Ireland as legitimate on a global scale, especially since Ireland was previously one of Europe’s poorest countries for over 200 years before. 

While many experts cannot pick one thing that provided a reason for this economic boom, there are many more minor causes that built upon each other to give rise to the Celtic Tiger. These causes include low corporate taxes and wages, foreign investment, a more stable national economy, adequate budget policies, European Union membership and subsidies, and investment in American companies, leading to Ireland collecting ‘runoff’ from the U.S. economic boom. The Irish Development Authority, or IDA, used its status as an EU member to convince many American tech companies, including Dell, Intel, and Gateway, to move some of their operations to Ireland. To this day, the U.S. and Ireland remain close trade partners and many American companies base their operations in Ireland. 

This incredible boom in the Irish economy also had an effect on Irish agriculture. Following World War Two, many Irish agricultural jobs were on the decline, especially in the farming and production sectors. In addition, the subsequent growth of agricultural output was slower than that in the industrial and service sectors. However, with the republic’s entrance into the European Economic Community in 1973, things began to look up for Irish agricultural exports, and with the start of the Celtic Tiger in the 1990s, farm incomes began to rise again after a two-decade decline. With the beginning of renewed trade within the European Union, Irish crop export and import began to rise, and the agricultural sectors were back on track.

 Economists are still studying how much each of these factors contributed to Ireland’s exceptional economic performance. The Celtic Tiger provided an abundance of well paying jobs, decreased emigration, and solidified Ireland as one of the European Union’s top national economies. 

 

Works Cited

Chen, James. “Celtic Tiger Definition.” Investopedia, 13 Oct. 2021, www.investopedia.com/terms/c/celtictiger.asp.

“Ireland – Independent Ireland to 1959.” Encyclopædia Britannica, 2019, www.britannica.com/place/Ireland/Independent-Ireland-to-1959.

“Irish Agriculture Has Changed beyond Recognition since 1970s.” The Irish Times, www.irishtimes.com/special-reports/2023/01/27/irish-agriculture-has-changed-beyond-recognition-since-1970s/.

“Social Effects of the Celtic Tiger.” The Irish Times, www.irishtimes.com/opinion/social-effects-of-the-celtic-tiger-1.1212643#:~:text=The%20effects%20of%20the%20Celtic%20Tiger%20have%20transformed. Accessed 20 Mar. 2023.