From Celtic Tiger to the Financial Crisis in Ireland

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The latest history of the Irish economy: from Celtic Tiger to the financial crisisCeltic tiger is a term used to describe the economy of Ireland during a period of rapid economic growth starting in the second part of the 1990s and ending in approximately 2007-2008. During that time Ireland experienced a boom which transformed the country from one of the poorest states in Europe into one of the wealthiest. The term Celtic Tiger was first coined by an Irish economist Morgan Stanley and derives from East Asian Tigers: South Korea, Singapore, Hong Kong and Taiwan which experienced a similar economic boom to that of Ireland in the late 1980s and early 1990s. In January 1988 The Economist presented the economy of Ireland in such words: Take a…show more content…
Another factor that highlighted Ireland in the eyes of American investors was that it was an English-speaking country and, unlike Great Britain, it was fully committed to the Europeanization process. Great Britain which rejected the Euro as a currency was less attractive for MNCs than Ireland which accepted the Euro. The consequences of Celtic Tiger were very positive: Ireland was transformed from one of the poorest countries in Western Europe into one of the wealthiest. Disposable income reached record levels, enabling for an increase in consumer spending. The economy changed its general character from agricultural to technological with 40% of computer and computer parts of Europe produced in Ireland. Unemployment fell from 18% in the late 1980s to 4.5% in 2007, and average industrial wages grew at one of the highest rates in Europe. Gross Domestic Product increased significantly. The new wealth enabled for large investments in modernization of Irish cities and infrastructure. Roads were improved and new transport services were developed, especially the railway. Irish trend of emigration was reversed with more people coming to the country, especially from Poland and Baltic states, than leaving it. Within Ireland many people left countryside in order to live and work in urban areas. The success of Irish economy triggered entrepreneurship and risk-taking – qualities that were absent during
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