Current Direction in the Irish Economy
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Dear Client,You have just provided additional details and change of currency for graphs that wasn’t provided earlier. Kindly place an adjustment of 5 pages so that all the details can be incorporated.[Institute]Current Direction in the Irish EconomyBy[Name][Date][Instructor] [Course #]Current Direction in the Irish EconomyIntroductionIreland is located in north-west part of the Europe with the population of almost five million people. It is one of the wealthiest countries of the world. Irish economy was known as the Celtic Tiger due to rapid economic growth from year 1970 to 2007. However, after that economy faced severe crisis as the recession was knocking the door of Irish economy. Nowadays, Irish economy is struggling to recover from the losses of recession. GDP is currently increasing with few fluctuations especially during the crisis years. However, percentage of central government to GDP is increasing. This means that economy is below recovery stage and it will take certain time to recover from the loss.  Background History and Financial crisisIrish economy was known as the fastest growing economy of the world and was named as the Celtic Tiger. The condition of employment was good and financial sector was also growing rapidly. GDP was also increasing and GDP growth was also influential. After that, recession hit most of the countries of the world and it has also affected the Irish economy.  In Ireland, financial crisis remained from 2008 to 2011. One of the major reasons was global financial crisis that affected most of the economies of the world; hence, Ireland was also affected in the same manner (Regan, 2012).  Recession affected the Irish economy to greater extant. During that period, unemployment also increased and major organizations of the Ireland reduced the salaries of its employees. Due to these steps, overall standard of living was also affected. Most of the countries of the world recovered from the economic crisis; however, Ireland is still struggling to recover from the crisis. Recession greatly affected the development sector of the economy. With the start of recession, people who were involved in the construction projects feared that they will not be able to pay the debt of the banks. Most of the people left their projects and banks faced the misery due to non-payment from the businessmen. With the rise of crisis, people stopped themselves to invest in the market, hence rotation and regeneration of the wealth was also affected badly. Current Direction of Irish EconomyCurrently, Irish economy is struggling to recover from the losses of recession and economic downturn. This can be viewed from the analysis given below. This analysis will provide the analysis of GDP, GDP growth, unemployment, inflation and government debt. GDPIreland is continuously growing in terms of GDP as per WDI. These statistics show that how the economy is growing per year. In 2010, the GDP of Ireland was $218.44 billon. In 2011, GDP further grew and reached to $237.75 billion. In 2012, the GDP reduced significantly and reached at $221.9 billion (Ryan et al., 2012). In 2013, GDP further increased to $232.07 billion. In 2014, GDP further increased to $245.09 billion. Table 1.1 describes the Irish GDP in the current US dollars. Table 1.1 describes the GDP statistics form year 2005 to year 2014.
Table 1.1: Irish GDPYearGDP (billion)2005$210.402006$230.502007$269.302008$273.722009$233.562010$218.442011$237.752012$221.902013$232.072014$245.09Chart 1.1: GDP of Ireland[pic 1]Graph 1.1 describes the US GDP from 2005 to 2014. This chart shows that how Ireland GDP is changing with every passing year. From 2005 to 2008, the Ireland GDP is continuously increasing. The reason for the decline in the Irish GDP was due to economic crisis that the economy was facing during 2008 and 2009.  From 2009 to 2012, economy was in crisis and recovery stage, hence, during those years, GDP was fluctuating. In 2013 and 2014, the economy again shows certain growth and GDP starts growing for these two years. Hence, it can be said that nowadays, economy is at the right track. GDP GrowthTable 1.2: GDP Growth (%age)YearGDP Growth20055.720065.520074.92008-2.62009-6.42010-0.320112.82012-0.320130.220144.8Table 1.2 describes the GDP growth from year 5005 to 2014. In 2005, GDP grew by 5.7%, in 2006; there was also significant growth in GDP and GDP grew by 5.55%. In 2007, growth was also lower that was about 4.9%. In 2008, GDP growth was in negative numbers. This shows that wasn’t any growth in GDP in 2008. GDP further declined in 2008 as the GDP growth was in negative numbers. In 2010, GDP increases to a certain limit but GDP growth was in negative numbers. GDP growth was in positive number in 2011 and GDP was about 2.8%. In 2012, GDP was again in negative numbers. In 2013, GDP grew by 0.2 percent and in 2014; country’s GDP grew by 4.8%.  This shows that nowadays, GDP is growing significantly and country is progressing. From 2008 to 2012, economy was in crisis; hence, GDP growth was fluctuating between positive and negative numbers.