Ireland and recession are nevertheless well-acquainted

Not long ago, Ireland was in recession and languishing through massive unemployment to the tune of one lost job every five minutes. Yet according to the Wall Street Journal, a 2.7 percent bump in GDP as it relates to Ireland’s export market is an official sign of the end of recession. That doesn’t gel with the long economic recovery most experts predict for Ireland. One of the hardest-hit euro zone countries in the recent global recession, Ireland’s GDP had fallen by more than 14 percent entering 2010. The Times points to that figure, also as an ugly deficit and 13 percent unemployment, as the reason why Prime Minister Brian Cowen is not optimistic.

Source for this article: Has Ireland exited the recession? A quick fix seems unlikely by Personal Money Store

Ireland’s recession – Investor medicine needed

Sky-high benchmark bonds are keeping Ireland in the recession, reports the New York Times. This has frightened investors and kept guaranteed loan borrowing rates high, which has spelled trouble for Dublin. Ireland’s primary goal is to restore investor confidence through deficit reduction, but higher taxes, lower salaries for public workers and also the fallout of the burst housing bubble – including an uptick within the origination of low cost loans – have made it difficult for Ireland’s population to wait patiently.

Relying heavily on exports

Ireland has previously depended upon the business of info companies like Intel and Microsoft, but this time, they’re hoping exports will fuel their economic recovery. Wage and energy cost decreases – as well as a falling euro – have “improved competitiveness,” writes the Times, but that may not create enough jobs. Wage cuts are making Irish graduates think twice about staying home. They want fast cash loans, not the promise of a better Ireland in 10 to 15 years, when experts predict future infrastructure spending will resume.

Irish elections may not go well for Cowen in 2012

The long, hard road to economic recovery via tough deficit reduction might be the only way that Ireland will escape recession. But it will likely not happen fast enough for Irish voters in the next election. Prime Minister Cowen hopes his promise not to cut public salaries any more will be enough to conserve him, but seems like doubtful. The people can only take so much.

Discover more about this topic here:

http://online.wsj.com/article/SB10001424052748703426004575338433422665358.html?mod=googlenews_wsj

http://www.nytimes.com/2010/06/29/business/global/29austerity.html?hp=&pagewanted=all