Chart of the week: Ireland’s economic recovery gathers momentum

Irish GDP chart

Ireland has suffered a wrenching recession and only narrowly averted national bankruptcy thanks to a bailout from international creditors. But now it finally appears to be turning the corner.

GDP grew by 2.7% in the second quarter of 2014. The annual rate of expansion has now reached 5.1%, a figure typical of pre-crisis days. Meanwhile, unemployment has edged down to a five-year low of 11.6%. Ireland now looks set to trim its budget deficit to 4.8% of GDP this year, down from 7.2% in 2013.

Unfortunately, there isn’t much life in the domestic economy, as households are still weighed down by debts that total twice the national income, while mortgages arrears have been on the rise. Instead, growth depends on exports. For now, trade is strong.

Yet while Ireland’s two top trading partners, America and Britain, are growing rapidly, Europe, another key export destination, seems to be slowing. So it looks like there’s a long slog to go before the rebound reaches take-off speed.

Merryn

Claim 12 issues of MoneyWeek (plus much more) for just £12!

Let MoneyWeek show you how to profit, whatever the outcome of the upcoming general election.

Start your no-obligation trial today and get up to speed on:

  • The latest shifts in the economy…
  • The ongoing Brexit negotiations…
  • The new tax rules…
  • Trump’s protectionist policies…

Plus lots more.

We’ll show you what it all means for your money.

Plus, the moment you begin your trial, we’ll rush you over THREE free investment reports:

‘How to escape the most hated tax in Britain’: Inheritance tax hits many unsuspecting families. Our report tells how to pass on up to £2m of your money to your family without the taxman getting a look in.

‘How to profit from a Trump presidency’: The election of Donald Trump was a watershed moment for the US economy. This report details the sectors our analysts think will boom from Trump’s premiership, and gives specific investments you can buy to profit.

‘Best shares to watch in 2017’: Includes the transcript from our roundtable panel of investment professionals – and 12 tips they’re currently tipping. The report also analyses key assets, including property, oil and the countries whose stock markets currently offer the most value.