Ireland has successfully exited from its troika programme in late 2013, but still faces challenges. Presentation by OECD Patrick Lenain at IBEC 2014 CEO Conference.
7. IRISH RECOVERY:
GROWTH IS UNDERWAY
0% in
2013
1.9% in
2014
Source: OECD Economic Outlook 94, November 2013
http://dx.doi.org/10.1787/eco_outlook-v2013-2-en
7
10. IRELAND ATTRACTIVE TO INNOVATORS
• Easy to do business
• Government support
• Talent pool
• Good research centres
• FDI friendly
10
11. BUT LOW INTENSITY OF ENTREPRENEURSHIP
25
20
25
Birth rate of new businesses in %
20
15
15
10
10
5
5
0
0
Source: Eurostat, 2010
11
12. WHERE DO JOBS COME FROM?
YOUNG FIRMS AND “GAZELLES”
• Young firms (up to 5 years) make largest
contributions to net job gains.
• Gazelles (successful start-ups) make large
contributions to innovation.
• Successful clusters
–
–
–
–
Medical devices
Pharmacy
Computers
Agri-food
12
13. IDEAS TO CONSIDER
1.
2.
3.
4.
Ease access to government support
Balance direct support and R&D tax credits
SME Financing remains a challenge
Broadband is key
13
15. FIRST CHALLENGE:
STILL TOO MANY UNEMPLOYED
30
25
20
15
Unemployment
rates (%) in
2013
About 280000
jobseekers and
400000 on the
live register
10
5
0
15
16. SECOND CHALLENGE: HIGH HOUSEHOLD DEBT
(debt-to-income ratio in %, 2012)
300
300
250
250
200
200
150
150
100
100
50
50
0
0
Source: Eurostat
16
17. THE BUSINESS CASE
FOR INCLUSIVE GROWTH
•
•
•
•
Avoid scarring effects
Preserve employability
Retain skilled workers
Wellbeing associated with productivity
17
18. IDEAS TO CONSIDER
1.
2.
3.
4.
Youth Guarantee
Skills for expanding sectors
Efficiency of labour-market schemes
Support social entrepreneurship
18
20. TO SUMMARIZE
• Multiple signs that the recovery is underway.
• Ease young firms’ and gazelle’s access to capital.
• Engage long-term job seekers and indebted families.
20
