Ireland Economic Data
GDP GROWTH
Ireland - the Celtic Tiger
(This is my section) I’ll obviously focus on Ireland. The Celtic Tiger, Ireland has benefited incredibly from its membership in the European Union, both through financial aid and through inward investment by companies opening factories in the country to gain access to European markets and take advantage of the country’s low rate of corporation tax. As you can see, Ireland has been growing a remarkable rate, due mainly to a pro- business stance, low corporate taxes and its ability to woo foreign investors by securing union agreement to wage restraint in exchange for tax cuts.
INFLATION
Ireland - once a problem, now steady
As you can see from the graph, Ireland, much like the other coutries, dealt with increased inflation in the mid 1970s and early 1980s. However, Ireland experienced a sharp inflationary increase due mainly to rapidly increasing unemployment rates coupled with globally stagnant economic development. However, with the turnaround of Ireland in the mid 1980s, the country has been enjoying relatively low inflation rates. Recently, however, analysts feel Ireland’s EU membership could damage its low inflationary trend because of future plans on the part of the Economic Policy Committee of the European Union.
INTEREST RATES
Ireland - hand-in-hand with economic development
While moving relatively in sync with the other countries, Ireland most notably shows a significant difference from the countries’ trend around 1997 when Ireland really began to come into its own as an economic power within the European Union. However, it’s important to note that the European Central Bank (ECB) sets Ireland's interest rate. Germany's sluggish growth limits the extent to which the ECB can hike rates. This creates a bizarre situation whereby Ireland's monetary policy is more closely linked closer to the anemic Germany than to its own booming economy. Irish growth has fed off the structural rigidities of continental Europe.
GDP per CAPITA
Ireland - steadily increasing labor force
Ireland’s GDP per capita is an interesting economic indicator, particularly when graphed. While Ireland experienced no spectacular GDP per capita growth in the earlier half of the twentieth century, 1985 marked the beginning a turning point economically. The growth rate of the Irish economy began to far surpass a spectacular trend of population growth, due to increased demand for domestic labor. However, GDP per capita seems to be leveling off in 2002, which would be explained by a satisfaction of labor demand...