PESTLE Analysis of Ireland

Pestle analysis of Ireland. Ireland is a North Atlantic Island country. Ireland is the world’s 20th largest island, 3rd largest in Europe, and 2nd largest in the British Isles. The capital of Ireland is Dublin.

Ireland has a total area of 32,595 square miles, and it’s the 20th largest country in the world in terms of area and size. Approximately more than 4,976,189 million people are populating the country, and it’s the 19th world’s most populated country.

The island’s history dates back to 10,500 BC, but the country Island came into existence in the 1st century. England gained control over some parts of Ireland during the Anglo-Norman Invasion in the 12th century. Ireland officially became under the control of the UK through the Act of Union 1801. The country finally gained its independence through the war of independence in the 20th century. However, Northern Ireland still remains under the control of the UK.

Today, we’ll discuss the pestle analysis of Ireland. It’s would analyze the macro-environmental factors impacting the world’s leading European country. Here’s the pestle analysis of Ireland as follows;

Political factors impacting Ireland 

Government System

Ireland follows the parliamentary democratic system of government, where the Prime Minister and the President are the head of the government and the head of the state respectively. However, the president has a limited role and power in the country. But when it comes to representing the country, he does it well nationally and internationally.

Brexit Deal

The Brexit deal has made it possible for the UK to leave the EU, and Ireland is still a member of the European Union. In fact, Ireland played a significant role during the negotiation of the Brexit deal with the EU over the issues of trade and movement of people.


Ireland has membership and alliances with the world’s institutions like UNESCO, OECD, WTO, the World Bank, the UN, and the European Union. Other than these alliances, the country has established very good diplomatic relations with different countries of the world like the USA and the UK.

Political Environment

Ireland has a stable political environment in the country. Some of the Irish businesses and companies have to face bribery regulations and lawsuits. However, the country doesn’t have corruption issues. It’s worth noting it here that Ireland is working alongside the UN in maintaining peace worldwide. She’s staying neutral in the international conflicts.

Economical factors affecting Ireland 


According to an estimate, the annual nominal GDP of Ireland in 2020 was 399 billion dollars, and it’s 28th world’s highest. Out of which, the GDP per capita of the country was 79,699 dollars, and it’s 3rd world’s highest.


Ireland has a skilled professional workforce and it’s one of the main behind the country’s growth. However, the Irish corporate tax rate is lower and it’s 12.5%. Most importantly, Irish laws and regulations support businesses and industries. That’s why many corporations call Ireland a “tax haven.”

The personal income tax rate is 20% and 40% depending upon the income level. If the personal income is lower than 35,300 pounds for single and 44,300 pounds for married couples, then it’s 20%. If it’s above, then the personal income tax rate would be 40%.

Economic Recession

The 2008’s European economic recession impacted the Irish economy very badly. But thanks to the country’s lower corporate tax policies, which attracted tech giant companies like Google, Facebook, Microsoft, Amazon, and others to use Dublin as a base to target the European market. However, the impact of the current phase of the economic recession is yet to come.

Imports & Exports

Ireland’s main exports are animal products, food items, pharmaceutical products, medical devices, chemicals, computers, equipment, and machinery. She exports it to SwitzerlandGermanyLuxemburg, Belgium, UK, and the USA.

The country’s top imports are electrical equipment, mineral fuels, vehicles, machinery, pharmaceutical products, and aircraft. She imports it from FranceChinaGermanythe USA, and the UK.

Social factors affecting Ireland 


Irish people have an adventurous nature, and they love to travel the world and spend time with their families and friends. Their attitude is kind, flexible, amiable, and polite and they take pride in being Irish. They spend their weekends and holidays in the local pubs and bars to socialize with people over a drink and a cup of tea.


English and Irish are the two main spoken languages. Roundabout 5 million people are populating Ireland. The average life of Irish men and women is 78 & 83 years old. The living cost in Ireland is lower than in many other European countries. However, Dublin is costlier and the living cost is the same as London.


Ireland falls under the category of the world’s leading rich countries. But the country is still facing issues like poverty. Approximately 780,000 people are living under the poverty line. The depression among Irish people is higher than in any other European country. However, the country needs more social housing projects for homeless and poor people.

Technological Factors Affecting Ireland 

 Tech Growth

Ireland is the world’s technologically developed country and Dublin is the hub of many tech operations. Tech companies like Intercom, Intel, Airbnb, Facebook, HP, Dell, Acer, PayPal, Payoneer, Apple, and many others have their offices there. Approximately 9 out of 10 world’s leading tech companies have their offices in the country.

Most importantly, Ireland has a plethora of foreign tech talent and skilled professionals. The availability of multi-lingual tech talents attracts many tech companies into the country. Tech professionals and tech companies are complementing each other.

On the other hand, Irish people have very limited tech skills. Many rural people don’t have access to broadband and other facilities like the big cities.

Legal Factors Affecting Ireland 


The laws and regulations of Ireland are very supportive to businesses and companies. The lower taxation is one such example of supportive Irish policies. On the other hand, employees have a right to public holidays, paternity and maternity leaves, annual leaves, maximum working hours, and standard wages. Irish law doesn’t allow discrimination of any kind and everyone is equal before the law.

Environmental factors affecting Ireland 

Environmental challenges

Ireland is also facing some environmental challenges like loss of biodiversity, emission of greenhouse gasses, noise, water, and air pollution. The country has declared a state of climate emergency after the UK in Europe, and it has attracted a lot of criticism.

Climate & Tourism

Ireland is home to breathtaking country sites, scenery, landscape, and hundreds of beautiful beaches. Such charming sites attract the attention of millions of tourists, and they promote the country’s tourism industry.  

Conclusion: Ireland Pestle Analysis Example Country

After a careful study of the pestle analysis of Ireland, we have concluded that Ireland is indeed the world’s leading developed and rich country. Lower home-based tech professionals, environmental challenges, and increasing poverty levels are some of the main challenges. Ireland should utilize its resources to address these issues; while paying heed to the external political, economical, social, technological, legal, and environmental factors impacting the country.

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