The Republic of Ireland is a state located in the north-west of the European continent (Nolan). After suffering from invasions in its early years, the country managed to survive politically and economically.
The Irish economy is worthy of a glance, particularly how it managed to achieve the sudden economic growth and more importantly how it continuously survive the threats from recession and economic crisis…
Our paper is divided into five sections. The first one is the discussion of the current economic state of Ireland particularly using the 2008 and 2009 data plus the recent 2010 figures for an update, then we discuss the contributing factors to such a state in the next section. To get into the details, we examine and analyze the fiscal and monetary policies done recently. This will compose of the third and the fourth sections respectively, wherein analyses using economic theories will be in-depth. The last section discusses the question of how successful has the Irish government and the Central Bank been in managing the economy. Here we will be able to directly answer the question.
Ireland has been a success story, until the recent global economic recession. From an agricultural country at the start of 1900, Ireland experienced an unprecedented economic growth with its GDP doubling in size in a little more than a decade (ESRI). It entered the European Union in 1973, as one of the pioneering countries. Fuelled by its EU membership and several investment promotion policies, the Irish economy became the fastest growing economy among the EU members (iExplore). "In recent decades the Irish economy has been transformed from being agrarian and traditional manufacturing based to one increasingly based on the hi-tech and internationally traded services sectors. In 2007, the services sector accounted for 64 per cent of Irish GDP, while industry accounted for 33 per cent and agriculture just 3 per cent" (ESRI).
Ireland's economic transformation was achieved through the promotion of export-led and advanced technology business thorough an open economy. It has attractive packages to investors with its banking and finance growing significantly, together with tourism (iExplore).
Mr. John Hurley, Governor of the Central Bank and Financial Services Authority of Ireland noted that the current Irish economy is not comparable to what it has been 20 to 25 years ago, particularly in the area of standard of living, transforming from a relatively low standard of living to one with an average per capital income being above the entire EU Average (Hurley).
Over-all, it is the EU membership that can be safely assumed to have brought forth the change in Irish economy, transforming it from a mainly agricultural society into the "modern, technologically advanced Celtic Tiger economy" (European Union).
The remarkable economic growth that the country has achieved face an uphill at the start of 2007. "The pace of economic growth decelerated in the second half of 2007, largely due to a contraction in housing construction. In 2008 it is estimated that output fell for the first time since 1983, and the recession deepened in 2009" (ESRI). The graph below shows the GDP growth from 1997 to 2009. After 11 years of positive growth, with the highest posted in 1999 at near 12%, Ireland suffered a recession in 2008 and 2009. It posted a real GDP growth of around -2.5% in 2008 and around -7.1% in 2009.
The decline in GDP has been manifested in various economic aspects such as prices, production and employment.
Volatile Money Supply: Irish Inflation
Inflationary pressures has ...
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(“The Irish Economy Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
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(The Irish Economy Essay Example | Topics and Well Written Essays - 2500 Words)
“The Irish Economy Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.net/politics/292673-the-irish-economy.
The author analyzes the case when the Irish nation experiences a recession first, which is followed by a short lived period of recovery and lastly, a recession once again, so that there are in all two recessions that the economy experiences. He suggests that a positive shift in aggregate demand is possible when an economy follows a stringent budget regime.
It will also assess the Irish interaction with other countries such as the US and the UK during the various moments of upheavals. In addition, it will critically assess the relationship between Protestants and Catholics especially during and after the Irish Conquest.
First there is merit in surveying just how the economy is faring and has fared over that period of time. In an index for 2012 relating to economic freedom, the Irish economy has been rated well, at 9th freest in the whole world, second only to Switzerland in the whole of Europe, even as that particular ranking noted that as far as drops in total scores on economic freedom are concerned, Ireland’s recent drop is among the 20 largest for 2012.
Ireland’s implementation of the corrective program continues to be strong and has yielded fruitful results. Thus in sum, it can be said that the Irish Government has been successful in repairing its economy and returning it to the economically viable state it was in before the financial crisis hit it in 2008.
It was not a long fall but it certainly was a hard one. His head had cracked open like an egg upon impact and death was instantaneous. She liked to tell herself that he never really knew what hit him. Just one slight shove and he'd toppled over the edge and right down to the rocks below.
(Christopher T. Whelan 2007).In 2004 alone the GDP stood at 138% (2004) which meant that it was the second highest in Europe.
The monetary position of Ireland was already improving even back in 2000 as the interest rates fell at the start of the European Monetary Union.There have also been initiatives to make Ireland a fiscally competitive region within the EU by avoiding wage inflation through the incomes policy and allowing the stabilisers to work on the budget, which moved to a surplus of about 4.6% of GDP in the year 2000.
The waning influence of the Irish Catholic Church over the Irish Republic was reflected in the changes that were seen in the alterations that were brought about in Irish law in relation to the influence of
But during the past three years (2006 to 2008) period of rapid catch ups has ended and growth has slowed down. Labour productivity levels are high but comparatively low with previous years. Ireland remains a good foreign
The Irish economy is member of the European Union and controlled by the European Central Bank (ECB) and thus does not have perfect autonomy when it comes to making its economic policy. The ECB has a vested interest in
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