Ireland is the Fastest Growing Economy in the European Union

According to a recent report issued by the Central Statistics Office (CSO) and reported by DW.de, Ireland has logged the fastest rate of growth of all of the 28 European Union member countries. The growth appears to reflect strong surges in both exports and domestic demand.

What the Numbers Reveal

According to a recent report issued by the Central Statistics Office (CSO) and reported by DW.de, Ireland has logged the fastest rate of growth of all of the 28 European Union member countries. The growth appears to reflect strong surges in both exports and domestic demand.

What the Numbers Reveal

Gross domestic product (GDP) in Ireland expanded by 4.8 percent in 2014, the biggest GDP growth rate in all of the European Union. The average rate of growth for all of the other EU nations in 2014 was a scant 1.3 percent, while the overall average for the “Eurozone” was just 0.9 percent. Obviously, Ireland’s 4.8 percent growth puts it head and shoulders above most other European economies.

The government in Dublin told the press that the country enjoyed strong growth after it became the first of the financially rescued Eurozone nations to exit its bailout program. The secret to Ireland’s success was deep cuts in state spending, large tax hikes, structural reforms to the Irish economy, and the sale of a number of state-owned assets.

Ireland’s Future Plans

According to Irish Finance Minister Michael Noonan, “Economic growth is now broadly balanced, exports are contributing to competitiveness gains while the domestic economy is now also contributing positively.” He added that the government planned additional measures to drive further growth and job creation.  He also confirmed that Dublin would proceed with plans to repay a further 5.5 billion euros ($5.84 billion) to the International Monetary Fund (IMF) several years earlier than required.

To do this, the country will replace expensive bailout debt with more favorable, traditional forms of national financing. “This early repayment of the majority of IMF loans will deliver savings of over 1.5 billion euros over the lifetime of the loans,” Noonan said.

Greek Debt Remains an Issue

While Ireland’s successes might cause some to suspect they will feel particularly charitable to other nations who have undergone similar financial hardships, Ireland is staying resolute with regard to its dealings with Greece. Ireland’s growth masks its heavy, possibly unsustainable debt. Thus, Ireland is closely following Greece’s efforts to obtain easier repayment terms.

Ireland is counting on any money it has loaned in the past to be paid timely in order to meet its own obligations. But, if Greece is successful in negotiating better terms on its debts with the IMF, Ireland may attempt to follow suit in order to fully solidify its new financial solvency.