Recently a lot has been written about how Ireland could be the model economy of how to overcome a debt crisis by using austerity measures. Interesting to note that in the 1990’s the ‘Celtic Tiger’ was heralded as a shining example of how to run a successful modern economy. Now that the economy has become one of the basket cases of Europe it is ironic that they are, according to Angela Merkel and Nicolas Sarkozy, providing the antidote.
Although the economy is performing better there is still a lot of pain being suffered especially from those who can least afford it – as within most eurzone countries it is the “working” person who suffers the most. However a year after its €67.5bn bailout economic conditions have been improving in the Emerald Isle.
– Exports are up 5.4%
– GDP is up 1.2% in Q2 2011
– Budget deficit is down from 32% of GDP in 2010 to 10% of GDP in 2011
But the bad news is still there:
– Salaries of nurses, teachers, civil servants etc have been cut 20%
– 2012 will see €3.8bn in tax increases and spending cuts
– Retail sales fell 3.8% in October from a year earlier
– Unemployment is now at 14.5%
– The above figure would be higher except for the increasing numbers leaving the country
However although Ireland is making gains in rectifying the economic problems in their economy, it could be all in vain when you consider what might happen to the eurozone.