It is certainly well documented that one of Ireland’s biggest problems and one which largely caused it’s economic troubles was the bursting of a huge, unsustainable property bubble. The country has been in recession ever since, so any news of growth in any sector is bound to be reason for some optimism.
For those who reason that any recovery should be well balanced and across all sectors however there is still cause for concern. For example much of the rise seems to be linked with a growth in construction spending up a massive 15% this year. Obviously this is from a small base but it’s still a huge rise in a single year for an economy still technically in recession.
For example lets look at some other sectors, ones which we at cipec.org for example think should be important sectors in the majority of recovering economies. Sectors like agriculture, forestry and fishing are not the big, boom sectors of many economies but they are often the most sustainable and provide many, many jobs. These areas in Ireland fell by around 3%, if you look at other key economic sectors like distribution and transport a similar story – with falls of around 2%.
There’s no doubt that things are improving in Ireland, for example they were able to exit the bailout put in place some three years ago. They met all the economic conditions put in place by the EU, the European Central Bank and the International Monetary Fund. Unemployment although still very high has fallen about 2.5% over the last year too and has a strong downward trend which the Government is hoping to continue and accelerate.
The media is also positive, if you watch the BBC you can see many positive stories being led which is in stark contrast to the economic jokes that were streamed some years ago. Incidentally – this link will allow you to access the BBC’s broadcasts online if you are in Ireland.
The worry is still there, though is the sector that caused Ireland’s economic woe’s really the sector that should be pulling it back from the mire. Sure construction and property is a vast lucrative market but look what happened last time!
For Further Technical information on the geo-location method mentioned above, please see this for help.