Republic of Irelands economy over the past three years Essay

Republic of Irelands economy over the past three years - Essay Example However, this economic boom started slowing down in 2001, two years later it resumed and then in 2006 it slowed down again. Efforts in this essay will be directed towards the post 'Celtic tiger' years. (O'Kane, 2007) Between the years 2005 and 2006, the government was successful in maintaining economic growth. However, after 2006 to 2008, there was a reduction in the economy and there are numerous factors that caused these increase and reduction. Between 2005 and 2006, the economy hade resurgence because the government dealt with some of the problems the country had encountered before and this was aided by some external factors. At that time, (2005-2006), the rate of economic growth in Ireland was over four percent while other countries such as France, Germany and Italy in the European Union had economic growth rates of between one percent and three percent. Ireland had been struggling with Foot and Mouth Disease at a certain point but this was dealt with accordingly and by 2005 and 2006, the problem had been eradicated thus boosting sales in the primary sector. (Clinch et al, 2008) Another factor that contributed to this economic growth in the first year under analysis could be because of increases in property values. Consequently, there was greater employment in the construction sector. But other external factors also contributed to the high economic growth rate. ... It also produces Apple, IBM, and HP makes. Therefore technology is a crucial factor in Ireland's economy. Ireland was a strong economic partner to the United States; therefore any factors affecting its partnmers were likely to trickle down to the country. Four years ago, the US had experienced the September eleven attacks, but by 2005, this had reversed and led to US' economic recovery. The government also encouraged further investments in industry, science and technology between 2005 and 2006. This was seen by the numerous international firms that have set up branches in Ireland. One such company is Google; others are Intel, Abbott Laboratories and Bell Labs. In line with these developments, the Ireland government decide to establish a body known as Science Foundation Ireland which was formed to assist science bodies in the Republic. The government had created an SSIA savings scheme and funds had matured. Consumers had been cushioned in their expenditure and this boosted growth in the retail sector. (CIA, 2006) But in the years 2006 and 2008, there has been resurgence in economic growth. This could be as a result of a recession in property values. Because of availability of labour and growing demand for homes after the Celtic Tiger years, the Republic started building homes aggressively. By 2006, homes had reached 90, 000 which is almost half of what the UK has yet the ratio of populations between the UK and Ireland is 15:1. This means that by 2007 and 2008, there were excess homes compared to the demand. Rent declined and there was less income coming from that sector. Another factor that led to this decrease in economic growth was the expansion of the European Union. During 2007, Romania and Bulgaria entered