Ireland - the eurozone’s model pupil - fails the test

Ireland has always been "tipped as the eurozone's best chance of a bail-out success story", says Jamie Smyth in the Financial Times. But GDP shrank by 0.6% in the first three months of the year, and the latest revisions to previous figures show that growth has actually contracted for three successive quarters now.

Ireland profited from an export-led recovery after its bail-out in 2010, with foreign sales offsetting the debt-soaked domestic economy. But the reliance on exports is taking its toll now that the rest of Europe has fallen into recession and the global economy remains tepid. Exports of goods and services declined by 3.2% in the first quarter. "Unless there is some recovery in Europe then Ireland won't enjoy a sustainable recovery," says Alan Barrett of Ireland's Fiscal Advisory Council.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.