Comparative analysis of the economic performance of REPUBLIC OF IRELAND & PORTUGAL

REPUBLIC OF IRELAND & PORTUGAL

Macroeconomics ECO201

Table of Contents

1. Introduction 3
1.1 Country Introduction 3
1.2 Sector Introduction 3
2. Findings 4
2.1 Gross Domestic Product 4
2009 4
2010 4
2011 5

2.2 Inflation 5
2009 5
2010 5
2011 6

2.3 Unemployment 6
2009 6
2010 6
2011 7

2.4 Balance of trade 7
2009 8
2010 8
2011 9

3. Conclusion 9
4. Bibliography 10
5. Appendix 12
Growth rate 12
Inflation 15
Unemployment 17
Balance of trade 20

1. Introduction

The following report discusses and analyses the financial standings of Portugal and the Republic of Ireland from 2009 to 2011. There are different tools and rates that signify whether or not a country is experiencing a recession, has a flourishing economy or is going through a stagnant period. In this report the tools and statistics used to analyze the economic standing are GDP growth rates, unemployment, inflation and the balance of payment accounts.

GDP rates signify the economic health of a country based on output of goods and services produced by labour and properties (Bureau of Economic Analysis, 2012). The GDP for each country between years 2009 to 2011 will be compared against the other and interpreted.

Unemployment statistics are another useful tool in measuring the prosperity of a nation. Full employment is one of the key economic objectives of an economy. Most times, unemployment fluctuates in accordance with the business cycle but can also stubbornly remain unsustainably high after a recession, even if the country is experiencing a recovery based on GDP statistics for example.

Inflation means a sustained increase in the aggregate or general price level in an economy (Economics Help,

Bibliography: Ali, Shimelse, 2010. Portugal’s Growth Challenge. International Economic Bulletin, Carnegie Endowment. [online] Available at: http://carnegieendowment.org/2010/05/13/portugal-s-growth-challenge/jm0 Bureau of Economic Analysis, 2012 Economics Help, 2012. Definition of Inflation, Economics Help [Online] Available at: http://www.economicshelp.org/macroeconomics/inflation/definition.html ESRI (the economic and social research institute), 2012 Filger, Sheldon, 2011. Portugal Faces Severe Fiscal and Economic Crisis As Eurozone Sovereign Debt Fears Grow. Huffington Post [online] Available at: http://www.huffingtonpost.com/sheldon-filger/portugal-faces-severe-fis_b_841170.html. And http://www.inflation.eu/inflation-rates/ireland/historic-inflation/cpi-inflation-ireland-2011.aspx (Accessed: 24.3.2012) Ireland 's External Trade for July 2011, 2012. True Economics. [Online] Available at: http://trueeconomics.blogspot.co.uk/2011/09/21092011-irelands-external-trade-for.html NESDO, 2011 Portuguese Chamber, 2011. Foreign Direct Investment in Portugal. [online] Available at: QFinance, 2012 Quarterly Financial Accounts for Ireland: Q3 2011, 2010. Central Bank of Ireland. [Online] Available at: http://www.centralbank.ie/press-area/press-releases/Pages/QuarterlyFinancialAccountsforIrelandQ32011.aspx Reuters, 2011. Factbox: Portuguese Economy and Politics. Reuters. [online] Available at: Statistical Press Release | Lisboa, 21st April 2011 |, 2009 http://www.bportugal.pt/en-US/Estatisticas/PublicacoesEstatisticas/NIE/Lists/LinksLitsItemFolder/Attachments/36/PR%202011%2004%2021.pdf The Economist, 2010 The Economist, 2011. Left Behind. (online, from print) Available at: http://www.economist.com/node/21528614 (Accessed: 30.3.2012) Workpermit, 2011 World Fact Book, 2012. Ireland Economy 2012. CIA World Factbook. [online] Available at: < http://www.theodora.com/wfbcurrent/ireland/ireland_economy.html> Who benefits from Ireland’s (im) Balance of Payments?, 2012 Please note: all graphs, except stated otherwise, are copied from tradingeconomics, 2012. Each graph has the source (tradingeconomics.com) stated underneath it. Refer to the bibliography on page 20 for detailed information on the source. 5.1 Growth Rate