Between 1993 and 1997, the economy grew by an unprecedented 40 per cent, and the trend has continued with growth in 2000 estimated to have reached 10.5 per cent in real GDP and a record 9.8 per cent in real GNP. This has led to lower interest rates, significantly lower unemployment and higher standards of living, in addition to spiralling house prices.

However, the ESRI (Economic and Social Research Institute) has estimated that real GDP growth will fall to 6.7 per cent in 2001 and 6.2 per cent in 2002. In real GNP terms the respective growth rates are 6.1 and 5.2 per cent in 2001 and 2002.

In mid-2001, Ireland's unemployment rate is at an all-time low of 3.7 per cent. However, interest rates are rising at a rate which is set to continue. In the summer of 1999, rates were a comfortable 2.5 per cent while in July of 2001 rates were 4.5 per cent.

Spiralling inflation and house prices are also of significant concern. Endless disputes over wage increases in the public sector could potentially damage the economy and its rate of growth considerably.

It is estimated that economic growth will continue at its current rate of 10 per cent in 2001 before a gradual levelling off in the next five years to a more sustainable level of 6 - 7 per cent.

As one of the first to satisfy the criteria for the introduction of the euro, the country joined the new European single currency on January 1, 1999 and the euro went into use for electronic transfers and for accounting purposes. Euro coins and bills will be issued in 2002, at which time the punt or the Irish pound will cease to be legal tender.

Also on January 1, 1999, control over Irish monetary policy, including setting interest rates and regulating the money supply, was transferred from the Central Bank of Ireland to the European Central Bank (ECB) which is responsible for all monetary policies of the European Union.

While the term 'Celtic Tiger' is used to define the strong booming economy, not all are basking in the affluence. Many suburban areas of the major cities are dogged by cycles of long-term unemployment, where whole generations of families have been without work. Drug addiction, crime and violence blight Dublin life, just as elsewhere in Europe. In addition, it is not uncommon to see homeless young adults and children begging on the streets of the city.

Meanwhile, previously run-down areas have been transformed into popular residential areas, and in rural areas, EU structural funds have vastly improved the infrastructure. Construction is at an all-time high with the most intensive building works taking place in the Dublin area.

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