Not long ago, Ireland was in recession and languishing through massive unemployment to the tune of one lost job each and every five minutes. The Wall Street Journal must think that Ireland has had enough, because they’re reporting the nation’s 2.7 percent GDP growth in exports for Q1 2010 is the sign that they’ve officially exited the recession. However, Ireland’s road to economic recovery remains long. Entering 2010, Ireland had lost 14 percent off their GDP over two years, making them one of the hardest-hit euro zone countries. As the New York Times indicates, a tremendous deficit and 13 percent unemployment have prompted Irish Prime Minister Brian Cowen to warn that there’s no easy way out of the economic quagmire.
Resource for this article: Has Ireland exited the recession? A quick fix seems unlikely by Personal Money Store
Investors’ role in Ireland and also the recession
Sky-high benchmark bonds are keeping Ireland in the recession, reports the New York Times. This has frightened investors and kept guaranteed loan borrowing rates high, which has spelled trouble for Dublin. 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.
What can exports do for Ireland?
Ireland has previously depended upon the business of info companies like Intel and Microsoft, but this time, they’re hoping exports will fuel their economic recovery. When lower public wages and energy costs may have helped somewhat, the fear that the export market won’t create enough jobs – not to mention fear for the falling euro – is very real, writes the Times. Wage cuts are making Irish graduates think twice about staying home. Irish college grads don’t want to wait 10 to 15 years for instant money.
Cowen worried about 2012
Ireland will escape recession via touch economic choices, says the nation’s government. But it will likely not happen fast enough for Irish voters within the next election. Prime Minister Cowen, despite his promise that he will not cut public salaries further in Ireland’s next spending budget, is on the ropes following the haymaker of public opinion. The people can only take so much.
More information about this topic at these websites:
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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