Why did Ireland bounce back from the great recession

completedit · 22-09-2020 12:58pm #1

in a way Greece and Spain did not? Austerity seemed to have worked in Ireland.* albeit after several tough years, whereas in Greece and Spain, it worsened the situation those countries found themselves in.

I intuitively get why Ireland eventually recovered but what exactly were the reasons?

*Worked in terms of economic growth.

Geuze · 22-09-2020 3:40pm

completedit wrote: »

in a way Greece and Spain did not? Austerity seemed to have worked in Ireland.* albeit after several tough years, whereas in Greece and Spain, it worsened the situation those countries found themselves in.

I intuitively get why Ireland eventually recovered but what exactly were the reasons?

*Worked in terms of economic growth.

I wouldn't say "bounced back", as the recovery was slow.

Peak for GDP, GNP = 2007

Low point for real GDP, GNP = 2009

BUT, by 2012 real GDP and real GNP were close to 2009 levels.

So after sharp falls in 2008/2009, the initial recovery was slow.

After 2012, there was a more sustained recovery.

ELM327 · 22-09-2020 3:48pm

Corporation tax and FDI?

Timing belt · 22-09-2020 6:21pm

ELM327 wrote: »

Corporation tax and FDI?

Yes along with it being linked heavily with the US economy.

jd1983 · 28-09-2020 7:28pm

Ireland's main two trading partners (the us and uk) recovered a lot quicker than the eurozone. This gave Ireland an advantage over the rest of the eurozone.

Exports is a (proportionally) larger contributor to our economy than larger eu states like Spain and Greece, meaning our main trading partners bouncing back gave us two large advantages.

Economies tend to recover from recessions, what was startling about the last recession was how long it took a lot of countries to recover.

bobbyy gee · 28-09-2020 7:36pm

tech companies park profits in ireland
with covid we will be in a recession by next year

https://www.irishtimes.com/business/technology/big-six-tech-companies-accused-of-aggressive-tax-avoidance-1.4101815?mode=amp

TheBlackPill · 28-09-2020 7:39pm

bobbyy gee wrote: »

tech companies park profits in ireland
with covid we will be in a recession by next year

https://www.irishtimes.com/business/technology/big-six-tech-companies-accused-of-aggressive-tax-avoidance-1.4101815?mode=amp

Believe it or not, Irish are hardworking and honest. Its easy to do business here. The endemic corruption in the above mentioned countries scares off FDI and also discourages locals from investing too

road_high · 28-09-2020 7:44pm

TheBlackPill wrote: »

Believe it or not, Irish are hardworking and honest. Its easy to do business here. The endemic corruption in the above mentioned countries scares off FDI and also discourages locals from investing too

That is very true- despite what we can believe sometimes- I know that from colleagues allover Europe and beyond.
In a sense in Ireland, a company “knows where it stands” and the state and public service is very stable. Culturally we are very different to Americans but can fit in fairly seamlessly to their ways of doing business and simple communication- Ireland and the workforce are generally very adaptable. I don’t think you could say that about Spain or Greece where the culture can be quite belligerent

TheBlackPill · 28-09-2020 8:08pm

Spain, where you can buy a business or home under one local Junta, then if the political party changes after election, your property can be declared an illegal development retrospectively and the courts don't give an sh1t. You may say grand if it happens to a bunch of drunken ex-pats looking for a cheap drunken retirement, not so grand if you plan to work there or start a business

TheBlackPill · 28-09-2020 8:10pm

road_high wrote: »

That is very true- despite what we can believe sometimes- I know that from colleagues allover Europe and beyond.
In a sense in Ireland, a company “knows where it stands” and the state and public service is very stable. Culturally we are very different to Americans but can fit in fairly seamlessly to their ways of doing business and simple communication- Ireland and the workforce are generally very adaptable. I don’t think you could say that about Spain or Greece where the culture can be quite belligerent

Operating list in a public hospital. say for fracture surgery. Was talking to a Greek doctor who says they would get bribes to put people at the start of the operating list, because if you were scheduled for operation later in the day, it was frequently postponed

Mad_maxx · 15-10-2020 2:32pm

completedit wrote: »

in a way Greece and Spain did not? Austerity seemed to have worked in Ireland.* albeit after several tough years, whereas in Greece and Spain, it worsened the situation those countries found themselves in.

I intuitively get why Ireland eventually recovered but what exactly were the reasons?

*Worked in terms of economic growth.

where the american economy goes , we go , as simple as that

Wanderer78 · 15-10-2020 3:47pm

Recovery?

washman3 · 15-10-2020 3:55pm

We just deferred our gigantic debt to our future generations.
In a nutshell...;)

Wanderer78 · 15-10-2020 3:58pm

washman3 wrote:

We just deferred our gigantic debt to our future generations. In a nutshell...

Rising public debt is relatively fine, it's rising private debt is the more dangerous one, and the one that ultimately caused the crash in the first place

Why did Ireland bounce back from the great recession

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