Current Economic Situation in Ireland

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Project 2 Olga Jusupova D12124279

For this project I have chosen to compare Irish Economy with Sweden and Spain economies. Irish economy enjoyed the “Celtic Tiger” times from 1995 until 2008. In these times irish property developers started to build infrastructure and property fast. A lot of housing estates and other buildings were built. Banks were willing to lend money to developers and nearly everyone who asked for it. Now Ireland in major debt of Billions of Euros because of banks giving loans so easily, especially Anglo Irish Bank. Banks believed that property prices will keep rising, but they started to fall rapidly living Banks with huge debts. When the economy began to decline with Global Economy Crisis. Property prices began to fall. Now there are about 600 empty housing estates in Ireland. Houses were never sold. A lot of them were unfinished. Unemployment doubled in 1 year. The jobs in construction were hit the most. Mortgage holders are unable to pay their mortgage, but the loans taken by mortgage holders and developers now must be repaid by taxpayer. Irish government made a decision to bail out the Banks and seek a loan from EU.

During the Celtic Tiger Irish economy expanded at rate 9.4% and continued to grow at rate 5.8% until 2008. Then Irish economy started to decline rapidly and recession has started. The GDP fell by 14% and unemployment rose by 11% in 2011.

The difference between gross domestic product (GDP) and gross national product (GNP) is that the first one is a good or service produced by residents within the country, second one produced by residents of the country , even if they are not living in it. The best indicator of the Health of the Economy would be GDP; because it is produced within the country and money are circulating in the economy. If it is GNP, the money is going out of the economy.

|Country Name |GDP - real growth rate (%) |Year of Estimate | |Turkey |9 |2011 | |Estonia |8 |2011 | |Moldova |6 |2011 | |Lithuania |6 |2011 | |Latvia |6 |2011 | |Belarus |5 |2011 | |Ukraine |5 |2011 | |Poland |4 |2011 | |Sweden |4 |2011 | |Slovakia |3 |2011 | |Iceland |3 |2011 | |Austria |3 |2011 | |Germany |3 |2011 | |Macedonia |3 |2011 | |Finland |3 |2011 | |Monaco |3 |2010 | |Montenegro...
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