Current Direction in the Irish Economy
Autor: Mikki • October 25, 2017 • 1,587 Words (7 Pages) • 652 Views
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Chart 1.2
[pic 2]
Chart 1.2 shows the fluctuations in the GDP growth from year 2005 to 2014. Graph shows that how the growth abruptly declined in 2008, further declined in 2009; another abrupt decline was in 2012 after that economy returned to the stable stage.
Exchange Rates, Interest and Inflation
Inflation
Table 1.3: Inflation Rate
Year
Inflation rate
2005
2.4
2006
3.9
2007
4.9
2008
4.1
2009
-4.5
2010
-0.9
2011
2.6
2012
1.7
2013
0.5
2014
0.2
Table 1.3 shows the inflation rate for the Irish economy. Inflation rate in the economy is also fluctuating with the every passing year. In 2005, inflation rate was 2.4; it increased to 3.9 in 2006, further increased to 4.9 in 2007, there was slight decline in inflation rate in 2008 as inflation rate declined to 4.1. Inflation rate was in negative number in 2009 and 2010. In 2011, inflation rate was 2.6, in 2012, inflation rate was 1.7, in 2013, and inflation rate was 0.5 and 0.2 was in 2014. These statistics show that economy is not in the danger of highest inflation rate and inflation is under control.
Chart 1.3: Inflation Rate
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Chart 1.3 shows the fluctuations in the inflation rate. There was increase in inflation rate from 2005 to 2007. Inflation declined to certain limit in 2008. Inflation rate was in negative number in 2009 and 2010(Gerlach, Lydon and Stuart, 2015). Inflation further increased in 2011 and declined in 2012, 2013 and 2014. This shows that prices are under control.
Government Debt
Table 1.4: Government Debt
Year
Government Debt
2005
31.80%
2006
28.80%
2007
27.60%
2008
46.80%
2009
66.90%
2010
83.70%
2011
97.80%
2012
120.50%
Table 1.4 shows the government debt as the percentage of GDP. In this table government GDP is presented from 2005 to 2012. In 2005, GDP was 31.80% of the GDP. In 2006, this percent decreased and also further decreased 2007. After 2007, government debt as percentage to GP continues to increase and still increasing. In 2008, government debt as percentage to GDP was 46.80%, in 2009, it further increased 66.90%, in 2010, it was 83.70%, in 2011, increased to 97.80% and in 2012, and it increased to 120.50%. This is real point of consideration for the economy as the government has to pay interest over those liabilities.
Chart 1.4: Government Debt
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Chart 1.4 shows the government debt from year 2005 to year 2012. Graph shows that there were certain fluctuations in the economy for few first 3-4 years. After that, it is continuously increasing and has reached to a maximum limit.
Unemployment
Table 1.5: Unemployment Rate
Year
Unemployment Rate
2005
4.3
2006
4.4
2007
4.6
2008
6
2009
12
2010
13.9
2011
14.6
2012
14.7
2013
13.1
Table 1.5 shows the unemployment rate in the Irish economy. Statistics show that unemployment rate was lower in 2005 and it was only 4.2. After 2005, unemployment rate is increasing but there isn’t any significant increment in the unemployment rate from 3005 to 2007, however, after, 2007, there were abrupt changes in the unemployment rate (Papadopoulos, 2014). In 2009, unemployment rate increased to 12, in 2010, unemployment rate increased to 13.9. In 2012, unemployment rate was 14.7, in 2013, unemployment rate was 13.1. Economy was in crisis from 2008 to 2011 and it is now recovering from the crisis.
Chart 1.6: Unemployment Rate
[pic 5]
Chart 1.6 shows the unemployment rate in the economy. This shows that how the numbers of unemployed people are increasing in Ireland. From 2005 to 2008, there wasn’t any significant change in the unemployment level, however, after 2008, unemployment rate increased to
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