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Revision presentation - Irish Economy in Crisis
1st March 2009
Things are not looking good for the Irish Economy:
- The 1st Euro Area country to enter recession
- High share of exports to GDP – exposed to global downturn
- Strong Euro damaging trade prospects e.g. with the UK
- Twin crisis – banking and government finances
- Bank of Ireland and Allied Irish Bank have required bail outs + nationalisation of Anglo Irish Bank
- Soaring budget deficit may cause Ireland’s credit rating to be downgraded
- Prospect of sharp rise in taxes to pay for the deficit
- Unemployment now 9.2% of labour force
- Industrial production declining by 12% pa
- House prices started falling in March 2007 and have fallen in every month since
- Economy on the brink of consumer price deflation
This adds up to an economy in crisis:
- Will Ireland leave the Euro Area?
- Will unions, businesses and government reach an agreement on wages during the recession?
- Or will it be able to use its own sovereign wealth fund to advantage?
This updated revision presentation looks at the issues
Launch interactive revision presentation on the Irish Economy
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.