It seems like yesterday that Ireland was in recession and losing jobs at the rate of one 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. However, Ireland’s road to economic recovery remains long. 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. 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.
Post resource: Has Ireland exited the recession? A quick fix seems unlikely by Personal Money Store
Investors’ role in Ireland and the recession
Ireland’s recession has continued to roll on the wheels of high-priced benchmark bonds, writes the Times. This has given investors pause and has not reduced guaranteed loan borrowing, making it all the more difficult for Dublin to take care of business. Higher taxes, lower public salaries and 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 attracted companies like Intel, Microsoft, Facebook and LinkedIn to address previous recessionary woes, but this time, the Irish government is depending upon an export revival, according to the Times. 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. In fact, wage cuts have driven young workers away. They want quick cash, not the promise of a better Ireland in 10 to 15 years, when experts predict future infrastructure spending will resume.
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 has promised the already slashed public salaries won’t go lower, but that may be a case of too little, too late. Irish voters might not be able to wait any longer.
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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