Impacts Of The Recession in Ireland

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The financial and political crisis in 2008-2014 in Ireland has had a great impact on the country, being one of the major reasons why the Republic sank into a deep state of recession in the last three decades. The crisis has had tremendous effects and impacts on the entire look and feel of the country.

 

Impacts On The Stock Exchange Market And Political Views

The general index of the Irish Stock Exchange reached the value of ten thousand points as peak in 2007 and then it fell all the way down to almost 2,000 points in 2009, which was the lowest point in the last 14 years. The year 2008 was the year the government officially admitted the country had stepped into the recession real, being the first eurozone state to enter the recession.

The percentage of unemployed people started to grow following the next months and it reached some historical highs. More than 100,000 protesters went out into the Dublin streets in February 2009; banking scandals also took place during the crisis and Fianna Fail’s party fell third in polls, a unique event in the political history of the country. The Green Party was ultimately replaced by the coalition formed between the Labour Party and Fine Gael, having a similar austerity agenda.    

 

The Effects On The Government Finances

In terms of government finances and the economy, the country started to drop significantly. By the end of the year 2007 the level of tax revenues failed to reach the annual forecast in the country’s budget by 5 percent. The same occurred with income taxes and the level of stamp duties that also fell short with 5 percent, respective, 19%. Hence, in 2007 the budget surplus of 1.2 percent out of the GDP had perished. The situation got worse, leading to the imminent recession at the middle of the year 2008, and boosted government deficit and unemployment rates soon followed.

Recession Impacts On Unemployment

A great number of immigrants left the country due to the arising problems. More than 34,000 people left Ireland from April 2009 to 2010, reaching the peak of emigrants in the last few decades. During the first quarter of 009, the GDP had dropped 8.5 percent as compared to the same quarter of the previous year. The GNP rate dropped 12 percent. The rate of unemployment rose to 11.4 percent. The economy exited recession in the third quarter of the year 2009 and its GDP grew by 0.3 percent. Unemployment reached 14.6 percent in February 2012.

In terms of crimes in the country, there was a decrease in the number of the majority of felonies as a result of the economic crisis. Nevertheless, prostitution doubled its rate and burglaries rose by 10 percent. The real estate market collapsed due to the drop in property value and the number of sales.

Feel free to check out our online magazine for the current situation in the country or go online for more effects of the recession. And because the internet is a place where you can discover many interesting things, we recommend you give the LadbrokesPartners.com betting affiliate program a chance. Become an online affiliate marketer and enjoy some of the best commission rates online.  

 

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Donagh is the editor of Irish Left Review. Contact Donagh through email: dublinopinionAtgmail.com