It was just a year ago that Ireland was in recession and losing a job each and every five minutes. Yet according to the Wall Street Journal, a 2.7 percent bump in GDP as it relates to Ireland’s export market is an official sign of the end of recession. But the overall consensus among experts is that Ireland has a long road to travel before they reach economic recovery. One of the hardest-hit euro zone countries in the recent global recession, Ireland’s GDP had fallen by more than 14 percent entering 2010. The Times points to that figure, as well as an ugly deficit and 13 percent unemployment, as the reason why Prime Minister Brian Cowen is not optimistic.
Resource for this article: Has Ireland exited the recession? A quick fix seems unlikely by Personal Money Store
Ireland and also the recession: Investor confidence required
Ireland’s recession has continued to roll on the wheels of high-priced benchmark bonds, writes the Times. Investors are downcast and guaranteed loan borrowing continues to fly, both of which has made things tough for the Dublin brain trust. Higher taxes, lower public salaries and also the burst housing bubble have also stretched patience to the limit, yet Ireland remains steadfast in its goal of recapturing investor confidence without overindulging in low cost loans.
Hanging their hat on exports
Ireland has a proven record of success attracting info-based companies like Intel, Microsoft and Facebook, but now they’re placing their eggs in the export basket. The Times reports that lower public pay and decreasing energy costs are on Ireland’s side within the economic recovery, but lack of jobs in the export market and also the falling euro cast a considerable shadow. Lower wages are sending bright young graduates elsewhere. They want quick cash, not the promise of a better Ireland in 10 to 15 years, when experts predict future infrastructure spending will resume.
Prime Minister Cowen gritting teeth over 2012 elections
The long, hard road to economic recovery via tough deficit reduction might be the only way that Ireland will escape recession. However, politics are often a “What have you done for me recently?” arena. Prime Minister Cowen has promised that the already slashed public salaries won’t go lower, but that might be a case of too little, too late. The people can only take so much.
Discover more information:
http://online.wsj.com/article/SB10001424052748703426004575338433422665358.html?mod=googlenews_wsj
http://www.nytimes.com/2010/06/29/business/global/29austerity.html?hp=&pagewanted=all
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