Text: Crescent Moon
As we all know, Europe has a developed economy and is also a gathering place for developed countries. There are 31 developed countries in the world, and 23 in Europe, accounting for more than 70%, that is, 7 out of every 10 developed countries are in Europe. At the same time, the level of social welfare in Europe is also very high. In 2021, the EU's economy will total $17.088 trillion, making it the world's third-largest economy after the United States.
When it comes to Western Europe, the most famous are France, the Netherlands, the United Kingdom and Belgium. These four countries also have their own advantages and are highly competitive in the world. Of course, the UK is now out of the EU. But what many people don't know is that there is a Western European country that rarely receives the attention of the people, and this country is Ireland. If you visit Ireland's capital on the street, probably more than 90% of people will not be able to answer.
But in fact, as a member of the European Union, Ireland's economy itself is relatively good in the EU countries, according to relevant data, after the special health event in 2020, the overall GDP of the EU fell by 6.3%, and the euro fell by 6.8%. But Ireland still maintains GDP growth of 3%, being the only EU economy to sustain economic growth in 2020.
What's even more amazing is that Ireland has become the fastest growing economy in the EU for 4 consecutive years! Ireland's GDP grew by 6.8% in 2018; Ireland's GDP grew by 5.5% in 2019; Ireland's GDP grew by 3.4% in 2020; and in 2021, GDP grew by double digits at 13.5%. This figure is among the best in the EU, far surpassing other EU countries.
And according to the data released by the Irish Central Bureau of Statistics, Ireland's per capita GDP in 2021 will be 85206 US dollars, ranking second in the world and first in English-speaking countries. At the same time, in the 2021 Economic Freedom Index published by the Wall Street Journal, Ireland ranks fifth in the world and second in Europe. In general, countries with higher indexes have higher rates of economic growth and higher levels of prosperity.
In addition, multinational companies such as Huawei, Apple, Facebook, Intel, Google, Yahoo, and Microsoft have chosen to transfer their intellectual property rights to Ireland, and the European headquarters of these companies have also landed in Ireland. According to the data, more than 800 American companies have landed in Ireland, creating more than 100,000 jobs for Ireland.
According to WTO statistics, Ireland's exports of intellectual property royalties jumped to the second place in the world, second only to the United States. You know, ireland has a total area of only 70,000 square kilometers, which is a little smaller than China's Chongqing municipality, with a population of more than 4 million people. However, due to its economic development, it is also known as the "Little Tiger of Europe". So why is Ireland so cattle? Why have so many globally renowned companies been attracted?
Of course, there is a reason for Ireland's unconventional behavior. First of all, it is inseparable from local education. It is reported that the university education in Ireland is very mature. The capital, Dublin, has been known as the University City since the Middle Ages. In the 2020 European Innovation Scoreboard, Ireland scored higher on the number of people with higher education, employment rates in science and technology innovation enterprises, employment in knowledge-intensive activities, and international scientific cooperative publishing.
Secondly, Ireland is backed by the European Union and is the only native English-speaking country in the European Union, so it is easier for overseas companies to sell and operate in Ireland's European market. Ireland is also an ideal destination for companies to set up their regional headquarters in Europe. It attracts talent from all over Europe and actively communicates and integrates with young local talents in Ireland to create an international, multilingual and positive business environment.
In addition, it is due to its stable development environment: Ireland is one of the seven neutral countries in the world, and its political situation has been stable. In addition, Ireland ranked 12th in the "Safest Country in the World 2016", one of the lowest crime rates in Europe. Ireland's social structure is relatively stable and life is highly integrated. It is one of the most immigrant-friendly countries and is very suitable for business development.
Not only that, but Ireland also has a well-established transport network to promote world connectivity. Ireland has nine airports, the largest airport, Dublin Airport, which has a well-established route for investors: 138 flights per week to the United States; 903 flights to EU countries per week; Beijing, Hong Kong and Shenzhen have now opened direct flights to Dublin.
In addition to this, the tax rate is low. Basically, the average income tax paid by companies in European countries is only about 23.3%. Ireland, however, has adopted the opposite approach to taxation, a low-tax development model. From the data since the late 1990s, Ireland has adjusted the corporate income tax rate to 12.5%, which has remained there until now.
It is reported that There are currently more than 1,500 multinational companies in Ireland, which can be said to be one of the important reasons for the rapid growth of the Irish economy. However, in early October 2021, the Irish government announced an adjustment to the minimum profit tax rate for multinational corporations from 12.5% to 15%. After the tax rate increase, it is unknown whether Ireland can still retain such a large multinational enterprise in the country.