Ireland Economy Improves Faster than All European Union Countries

The Irish economy grew by 4.8 percent in 2014, due to higher exports and stronger demand domestically. The European Commission also predicts that Ireland will grow at a faster rate than any EU country in 2015.

The Irish economy grew by 4.8 percent in 2014, due to higher exports and stronger demand domestically. The European Commission also predicts that Ireland will grow at a faster rate than any EU country in 2015.

Ireland surpassed the EU’s annual growth rate of 1.3 percent, including the Eurozone’s growth average of 0.9 percent. Ireland’s growth also surpassed the United Kingdom, and Irish exports to Britain is part of the reason why the economy is doing better. The United States is another major demand market for Irish exports, and large firms from the U.S. and abroad have headquarters in Ireland because of the country’s low tax rates.

Ireland Gains Steady Ground

This high-growth period has not occurred since 2007, one year before the Irish economy took a turn for the worse. In what become known as the “Celtic Tiger,” the economy underwent a bubble that included easy credit access and surges in housing and construction. Since Ireland is rebounding, officials plan to pay 5.5 billion euros that is owed to the IMF. Ireland owes a total of 22.5 billion euros, but over 18 billion euros has been paid off thus far. The country will save a total of 1.5 billion euros by repaying the loan early.

Ireland Not Out of the Storm

The good news should be taken with a grain of salt. The economy dipped in late 2014, and the economy only expanded .02 percent in the fourth quarter of last year. This is in stark contrast to .04 percent growth in the past few months. Although Ireland is in better shape, critics point out that the overall recovery rate of the nation remains in question over the long-term.

Unemployment remains over 10 percent, and the public is still recovering from crippling austerity measures that reduced the standard of living for many people. Politicians hope to use the positive data as leverage for the 2016 elections, but the government must do more to satisfy public concerns. Public opinion over the government’s economic policies has been less than stellar, but consumer demand did surge by 1.1 percent in 2014.

Those who support austerity will tout Ireland as proof that cuts to the public sector and social services work, but little investment has gone into job creation and raising the standard of living for the masses. As is the case with so many other austerity-stricken countries, the financiers and central banks benefit the most while the Irish people are the ones who have suffered the consequences of neoliberal policies and government mismanagement of the financial sector.