(1) Real GDP has contracted 1.9% in Q3 2011, while real GNP contracted by 2.2%. If growth in Q4 is negative for 2011, Ireland will officially slip back into recession. Of the 14 quarters since Q2 2008, only 4 have seen real GDP growth (28%), and 5 have seen real GNP growth (36%).All in all, a dismal result for all that austerity. This is not success: it is miserable failure.
(2) Unemployment is a disaster. It has soared to over 14% in early 2011 and remains at 14.5%
(3) The domestic sectors of the economy are stagnant or depressed. It is only exports that have provided some positive real GDP/GNP growth. However, with austerity and possible demand for Ireland’s exports falling in its trade partners, even that source of growth will falter, which will probably plunge the economy back into severe contraction. A healthy economy has balanced growth in both the export and domestic sectors. Ireland’s economy is deeply sick, and the only cure for its depressed domestic sector is government spending.
Monday, December 19, 2011
Neoliberal Austerity in Ireland: A Disaster
Professor Bill Mitchell has an excellent post here on the continuing disaster of Ireland’s austerity: