"There is economic life after death," says The Economist. Ireland has made a roaring comeback since it almost went bankrupt in 2008/2009, when its burst housing bubble floored the banking sector. In those two years, GDP shrank by 11%. In the third quarter alone, it grew by 1.4%, pushing the annual pace up to 7%. In 2014, it managed to expand by 5%.
What went right? Ireland's GDP is very dependent on exports, so the weak euro, a result of the European Central Bank's money printing, has helped. Ireland also kept its 12.5% corporation tax rate, a low figure that's encouraged multinationals to secure a presence there. America and Britain are two of Ireland's biggest trading partners, both of which been outperforming the rest of the developed world in recent years. And it's relatively insulated from the emerging-market slowdown, saysThe Economist.
The domestic economy has slowly revived too, with lower energy prices boosting consumer spending. Rapid growth is shrinking the public debt pile, which peaked at 120% in 2013 (almost five times its 2007 level). More than a fifth of it will have vanished by the end of this year. Growth may cool from today's "blistering pace", says Richard Barley in The Wall Street Journal, but Ireland will remain the "eurozone's comeback kid".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
