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Ireland: Huge Trade Surplus! Us$ 55.7 Bn In The Last 12 Months

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Ireland: Huge Trade Surplus: US$ 55.7bn/last 12 months.

Can it be a consequence of the HPC there? How?

I've just noticed in the table below that Ireland had a huge trade surplus in the last 12 months: US$ 55.7bn! That is actually too big, particularly for a country with such a small population. If it is not a mistake by The Economist, then it is the 4th biggest surplus in the world! (If you exclude oil/gas exporters Saudi Arabia and Russia)

Trade balances, latest 12 months ($bn):

Biggest surpluses: Germany +208.2; China +182.9; Japan +86.8; Ireland 55.7 (!)

Biggest deficits USA -621.4; Britain -140.8; India -121.8

I'm not familiar with the situation in Ireland. Have surpluses been happening there for a while already? Is it a normal thing? From a UK perspective that data looks very odd indeed.

Or is it a new phenomena related to the house prices crash there somehow?

Any ideas?

______________________________________________________________________________________________

http://www.economist.com/node/17312143?story_id=17312143

Trade, exchange rates, budget balances and interest rates

Oct 21st 2010

20101023_INT400.gif

Edited by Tired of Waiting

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Spuds and guns? :blink:

I have no idea. With a population of only 4.5 million! It would be a surplus/capita much greater than any other country in the world.

I don't get it. It must be a mistake.

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It's 90% Foreign investment and tax breaks. Google are there for tax purposes on foreign earnings as are drugs companies, Microsoft, some chemical as well.

Something like €8 Billion is in trade with Belgium i think which goes straight through the port of Antwerp.

Cumulative trade surplus is €28,431m

The "Double Irish"

http://www.pcmag.com/article2/0,2817,2371336,00.asp

Here's how it works. Payment for search ads purchased in Europe, the Middle East or Africa is sent to Google Ireland, where the corporate tax rate is 12.5 percent—but it doesn't stay in Dublin long enough to get taxed. Instead, the money is sent to Google Netherlands, a fellow EU country with a generous taxation scheme. Google Netherlands then sends "about 99.8 percent of what it collects" to Bermuda, the mother of tax havens.

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It's 90% Foreign investment and tax breaks. Google are there for tax purposes on foreign earnings as are drugs companies, Microsoft, some chemical as well.

Something like €8 Billion is in trade with Belgium i think which goes straight through the port of Antwerp.

Cumulative trade surplus is €28,431m

The "Double Irish"

I see. Yes, that is probably it. Thanks.

It had to be something "unusual" like that. The size of that surplus didn't make sense.

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I have no idea. With a population of only 4.5 million! It would be a surplus/capita much greater than any other country in the world.

I don't get it. It must be a mistake.

They have very low corporation tax, so loads of multi-nationals ship all of their EU/EEA stuff or do the sales invoicing from Ireland. The other main EU country that does this is Luxembourg (think Amazon, you pay Amazon S.a.r.l. and Amazon Ltd. deliver!)

Companies that invoice "goods" created in Ireland: Microsoft, Google, Intel, Dell, HP and most of the pharmaceutical companies. Some of them to real manufacturing as well as invoicing stuff made else where) i.e. intel who have a chip fab there.

There is of course plenty of traditional economy as well (massive beef/milk exports, building materials)

If looking at the Irish economy you need to have a very careful look at both the GDP and GNP, they give radically different views of the economy...

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They have very low corporation tax, so loads of multi-nationals ship all of their EU/EEA stuff or do the sales invoicing from Ireland. The other main EU country that does this is Luxembourg (think Amazon, you pay Amazon S.a.r.l. and Amazon Ltd. deliver!)

Companies that invoice "goods" created in Ireland: Microsoft, Google, Intel, Dell, HP and most of the pharmaceutical companies. Some of them to real manufacturing as well as invoicing stuff made else where) i.e. intel who have a chip fab there.

There is of course plenty of traditional economy as well (massive beef/milk exports, building materials)

If looking at the Irish economy you need to have a very careful look at both the GDP and GNP, they give radically different views of the economy...

Thanks. Yes, that must be it.

And it confirms what "northwestsmith2" just posted (you were probably writing at the same time).

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It's 90% Foreign investment and tax breaks. Google are there for tax purposes on foreign earnings as are drugs companies, Microsoft, some chemical as well.

Something like €8 Billion is in trade with Belgium i think which goes straight through the port of Antwerp.

Cumulative trade surplus is €28,431m

The "Double Irish"

+ Dell Computers

+ Irish Whiskey

+ Irish Beef

+ Irish Butter

Edited by South Lorne

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This shows how unbalanced the irish/global economy is, a country running an extremely large trade surplus, yet still has a chronically indebted populace.

The money this surplus represents is going somewhere but it certainly isnt the hands of the general population.

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This shows how unbalanced the irish/global economy is, a country running an extremely large trade surplus, yet still has a chronically indebted populace.

The money this surplus represents is going somewhere but it certainly isnt the hands of the general population.

Going to Stock holders as extra dividends, executives of Multi Nationals, back slapping about paying 2.4% tax (google) on billions of dollars of profit from EMEA. Certainly not going to the Irish treasury!

The Irish must be delighted with the €, sure to help the export lead recovery they need to pay off that 26% of GDP deficit! Countdown to bust and default...

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Going to Stock holders as extra dividends, executives of Multi Nationals, back slapping about paying 2.4% tax (google) on billions of dollars of profit from EMEA. Certainly not going to the Irish treasury!

The Irish must be delighted with the €, sure to help the export lead recovery they need to pay off that 26% of GDP deficit! Countdown to bust and default...

...from the same table the UK's deficit over 10% of GDP is higher than Greece at over 9%...... :unsure:

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...from the same table the UK's deficit over 10% of GDP is higher than Greece at over 9%...... :unsure:

Yep.

And I think this 9% is the new Greek number, after the IMF/German auditors...

Would our "10%" stay the same after a close scrutiny?

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Yep.

And I think this 9% is the new Greek number, after the IMF/German auditors...

Would our "10%" stay the same after a close scrutiny?

In a descending order of truthfulness, there are lies, damn lies, statistics and government statistics .....

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...from the same table the UK's deficit over 10% of GDP is higher than Greece at over 9%...... :unsure:

Yes we have the second highest deficit.

No need for us to cut? We can borrow and print are way to victory. If spend our way up to 26% and borrow £400bn a year we can probably avoid a double dip, just don't ask us for the money back. Merv can pay with freshly printed bills.

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Britain should just import a few regulators from Switzerland , they always run a tight ship over there.

Cut out the fat and it'll be plain sailing.

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Been there, done that, got the T-Shirt :)

http://www.housepric...dpost&p=2740030

Cheers. V. interesting:

You're Microsoft. You sell £1bn of software to the UK (25% tax) every year. It costs £100m to make in the US (25% tax) so there is a £900m profit to be accounted for somewhere.

In comes Ireland (0% tax):

1. MS US sells software to MS Ireland at £100m: MS US makes £0 profit, so untaxed.

2. MS Ireland sells software to MS UK for £1bn: MS Ireland makes £900 profit untaxed.

3. MS UK then sells software for £1bn: MS UK makes £0 profit, so untaxed.

Ireland has a £900m trade surplus and the Irish corporate sector generates £900m in profit.

Oh the wonders of technology...

P.S. Not so long ago this was illegal as it is tax evasion. But now that corporations control our democracies it's OK we don't mind.

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When you have a lack of demand in your own country, aren't you also going to have a massive trade surplus?

I think these numbers really only tell part of the story.

Yes, but 55.7bn in a country with a population of less than 4.5million is completely out of any proportion.

It is like a surplus per head of population of around US$ 12,400! And for every man, woman, child and pensioner in the country! Just not possible.

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It's a glow ball corporatist 'free marketeer' scam, like all the others.

Find an inexpensive little offshore island somewhere with an indigenous population that can almost speak english, install your own 'business friendly' govt, pump it full of cash, inflate it to the hilt but peg the currency - Euros anyone? - loot it as fast as you can.

Iceland worked along similar lines.

US democratic free markets in action.

:rolleyes:

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It's a glow ball corporatist 'free marketeer' scam, like all the others.

Find an inexpensive little offshore island somewhere with an indigenous population that can almost speak english, install your own 'business friendly' govt, pump it full of cash, inflate it to the hilt but peg the currency - Euros anyone? - loot it as fast as you can.

Iceland worked along similar lines.

US democratic free markets in action.

:rolleyes:

Didn't Iceland have its own currency?

And isn't the USA in a spot of bother right now?

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