Ireland in 2005

            
 
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Case Details:

Case Code : ECOA134
Case Length : 17 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : Ireland
Industry : -

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Introduction

Ireland, one of the smallest countries in the European Union, had attracted worldwide attention from economists and policy makers for the tremendous progress it had made in the past three decades. At one point of time, Ireland had been deemed an economic failure, a country that after years of mismanagement was suffering from high unemployment, slow growth, high inflation, heavy taxation and towering public debts. Yet within a few years, it had become the "Celtic Tiger", a rare example of a developed country with rapid growth, low unemployment and inflation, a low tax burden and a tiny public debt. In 1987, Irish GDP per person was 69% of the EU average (adjusted to EU 15).

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By 2003, it had reached 136%. Unemployment fell from 17% in 1987 to 4% in 2003; and government debt declined sharply from 112% of GDP to 33%. Annual GDP growth in the 1990s averaged 6.9%. After a downward trend coinciding with the American and, especially, the information technology (IT) slowdowns in 2001-02, the economy was bouncing back. Growth in 2004 and 2005 was expected to be around 4-5%. Could the Celtic tiger maintain this lead in the coming years?...

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