Ireland, announced on Wednesday that gross domestic product grew by 2.7% during the first quarter, compared to down 0.7% from a year earlier, technically out of recession. Economists expect Ireland to grow 0.5% and 0.6% this year, reversing earlier forecasts pointed to a contraction.
“Things are starting to improve,” said Alan McQuaid, chief economist at Bloxham, the leading independent brokerage in Ireland. “Assuming that the debt issue non-euro area will become a widespread crisis, Ireland should rebound strongly in the next 12 months, led by the good performance of exports.” A strong rebopund in ireland would create penny stocks that are definitely worth owning.
Ireland’s experience suggests that the economies can recover even cut spending, although the path of export-driven economy could be more difficult to follow their neighbors in the euro area.
The country suffered a major collapse in the banking and real estate in Europe, but was among the first to tackle their debt problems. Since 2008, has enacted tax increases, budget cuts and wage reductions equivalent to 8% of GDP, something like the austerity plan announced last week by Britain.