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3/17/09

Forbes.com/EU-Digest : Ireland Hung Over On St. Patrick's Day - No more Gold from the leprecon - by Parmy Olson

the Leprecon is running out of gold"
For the complete report from Forbes.com click on this link

Ireland Hung Over On St. Patrick's Day - No more Gold from the Leprecon - by Parmy Olson

The parades were getting under way; lime-colored banners were lining the streets of Dublin, and even Google had decorated its ubiquitous logo to mark St. Patrick's Day. Yet, it was only temporary relief for Ireland, whose once rapidly growing economy has been blighted by a property bubble, soaring unemployment and one of the most challenging recessions in the developed world. While Ireland's gross domestic product grew at an annual rate of 6.0% in 2007, the European Central Bank now predicts that it will contract by 6.0% in 2009. The Irish government calculates that unemployment averaged 6.3% for 2008 and will swell to more than 9.5% in both 2009 and 2010.

How did Ireland get into this mess? In the words of Lenihan, the economy suffered from "irrational exuberance" and property exposure that was "excessive," according to TradeTheNews.com. The government has already said it will have to raise taxes and cut spending this year; the Irish press reported that income tax take will rise by 2.0% in April.

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