Irish economy sees strong growth in Q2

| September 23, 2011 | 0 Comments

Figures today have revealed Ireland’s economy continued to see growth in the April to June period.

According to the Central Statistics Office, the economy grew by a better than expected 1.6% in the three-month period and this follows a revised 1.9% growth rate in the first quarter.

This represents the first time since 2006 that Ireland’s economy has grown for two consecutive quarters.

Meanwhile, today’s figures shocked analysts who had expected growth of just 0.25%.

Furthermore, the figures surpassed those from Europe’s powerhouses, Germany and France.

The latest figures will be regarded as encouraging for the former “Celtic Tiger” economy which suffered a prolonged recession and was one of the last euro zone nations to emerge from recession.

The economy slipped into recession during the first half of 2008 – becoming the first nation of the euro zone to do so.

The country’s economic turmoil resulted in a bailout package last year worth €85 billion.

However, analysts say the figures suggest the economy is in the early stages of recovering from its property and debt crisis.

Since the credit crunch four years ago, the country’s public finances have been battered by having to prop up the banking sector, as well as the collapse in its property market.

Ireland experienced a property boom in the late 1990s, with multinationals arriving to take advantage of one of the lowest corporate tax rates in the euro zone.

However, the country’s banking system came close to meltdown after the slump in the country’s property market resulted in a fall in the value of investments linked to it.

Several of the country’s banks have been nationalised, while property prices have fallen by more than 50%, in some cases.

Finally, like fellow bailed-out nations Greece and Portugal, Ireland has been forced to introduce tough austerity measures in order to reduce its spiralling budget deficit.

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