Economic Troubles

          Ireland currently has a very advanced economy, with 76% of the labor force employed in the tertiary economic sector (services).  This area of its economy accounts for 69% of Ireland's GDP (221.7 billion dollars), and keeps its economy running.  Meanwhile, 19% of the labor force is employed in industry, and the remaining 5% in agriculture, Ireland's traditional method of employment.  Ireland does maintain a fairly strong economy when compared to the rest of the world, but it has not always been, and at this moment isn't entirely smooth sailing.  In its post-imperial history Ireland has experienced two major economic recessions, that of the early 1980s, and the economic collapse of 2008 coupled with the current Eurozone crisis.
          During the early 80s, Ireland economy became increasingly sluggish.  The economy grew only 2.3% a year, inflation hurt the common man, unemployment skyrocketed, and government expenditure was over 50% of the GDP.  Whilst this period continued (1980-1986), Ireland greatly underperformed almost all other members of the EU.  In fact, the economy was so poor that over 200,000 Irish citizens emigrated the country between 1980 and 1990.  To end this period of recession and jump-start the economy the Irish government implemented public sector reforms, and they received aid from the EU.  Ireland's economy quickly reacted to these measures, becoming one of this best in the EU.  During the next decade (1994-2007), Ireland's economy was so strong that it was dubbed 'The Celtic Tiger' (see "The Celtic Tiger: Ireland's Economic Miracle").
          After a decade of boom, Ireland and the rest of the world, hit a bust in the mid 2000s.  During the collapse of many of its financial institutions, Ireland's economy took a beating, with banks losing around 106 billion Euros (in the US's perspective that'd be 10 trillion dollars).  Since 2008, the economy has actually shrunk over 10%, housing prices have lowered 47%, and unemployment has risen to 14% (compared to the sub-4% unemployment during the 'Celtic Tiger' years).  This recession, along with that of Greece, Portugal, and a handful of other EU nations, has hurt the Euro and threatens to bring down even more European countries.  In a last-ditch effort to save Ireland's economy they received an 112 billion Euro bailout package from the EU and the IMF.  Ireland is currently ramping up austerity measures in an effort to save themselves, and the rest of the EU, from total economic failure.

For more reading on the current crisis click here to read an article written by Michael Lewis (will redirect you from this page).