Gross Domestic Product Analysis

Gross domestic product is a measure relating to money of the worth of all final products and services manufactured in a specific period of time. Nominal gross domestic product estimates are at times used to calculate the economic performance of a country or region. This can then be used to make international comparisons.

Below is a line diagram showing the measures of GDP in Ireland for the period 2010-2015 In 2010 GDP was low at a figure of 42,955 at the start of the year increasing to 43,139 by the end of 2010. When GDP is low firms may be reluctant to invest and they lower workers’ wages as well as leaving individuals without a job due to not having the capital to keep them employed. This leads to less spending by consumers on products

In order to keep the economy running smoothly, central banks try to limit inflation. Generally inflation looks at the speed at which the general levels of goods and services is increasing and as a result the buying power of currency is decreasing.

Inflation in the Republic of Ireland fell in 2010, this was measured by the Harmonised Index of Consumer Prices. During the past ten years Irish prices became less competitive, this was suggested by the downfall of the harmonised competitiveness indicator, which was deflated by the Irish consumer prices.

During 2009 and 2010, consumer prices in Ireland fell however prices still remain high according to EU standards. Ireland had the fifth highest price levels in the EU in 2010 with prices 18% above EU average. Despite prices still remaining high in 2010, Ireland made a huge progress since 2009 when Irish products and services prices were 26% higher than the EU average. From this data we can clearly view and study Ireland’s progress.

Interest rates refers to the fraction of a loan which is charged as an interest to the borrower, this rate is generally indicated as a yearly percentage of the loan

Exporting is an activity of international trade, the sale of exported goods adds to the manufacturing country’s gross output. The capability to export products and services to different countries assist in an economy’s growth as it allows them to sell more overall goods and services.

Imported goods are those brought into a country from another country to be sold or traded further. Countries are generally more likely to import products and services which domestic industries do not have the necessary resources to produce as productively and economically. Raw materials which are not available within a country also have to be imported, for example Ireland is fully dependent on oil imports as there are no domestic oil production companies and there has been no declared commercial oil finds, hence oil must be imported from other countries such as Saudi Arabia in order to meet demand.

Exports are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies.

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