How is Ireland doing these days in the crisis? Such a nice modern and high tech country, was surprised when they got into trouble.
Hi Ben, nice of you to be concerned about us. It was no surprise really that we got into trouble here - we had a massive construction & real estate bubble in the last decade, aided by a
neo-con absence of financial regulation, greedy banks, and short-sighted government. Same story applied to the US, UK etc., but ours was just on a much larger scale as a proportion of our GDP.
Ireland is doing a little better now. It's a tale of two different economies in the same small country.
Exports are booming and basically keeping the ship afloat (we returned to overall growth last year and had a record trade surplus), and employment is rising in the tech and internationally traded sectors. This part of the economy is basically back to the "good boom" we had in the 90's (driven by creativity and productivity), as opposed to the "bad boom" we had in the 00's (driven by debt, quick-buck greed and hubris).
OTOH, domestic confidence and spending are weak, unemployment has hardly fallen at all yet (14.2%), property prices are still declining, new graduates are still emigrating to Australia and Canada. There is a sense that things have bottomed out, the worst is over and the government elected last March is doing a much better job (within the parameters allowed by the EU-IMF programme), but people are paying down debt or putting their money away in savings - it averages to something like €20k per head - and will not spend significantly until they feel certain that their jobs are safe, which may take 2 or 3 more years of recovery.
It doesn't help that just as we were getting our act together, the Greek tragedy became even worse and increased confusion in the euro-zone. That said, there's
an interesting graph in the Economist this week which shows how Ireland's 2-year bond prices have fallen considerably since last summer to about 5% while Portugal's have shot up to 20% - we seem to be convincing investors while our fellow-bailees, the Portuguese, unfortunately are not.
Ray