The economic data for Q2 proved that Ireland is showing the most robust performance in the euro zone. The Republic of Ireland’s economy grew 1.5% quarter-on-quarter and was up 7.7% annually in the April-to-June period. These GDP prints have been the strongest since 2007. In contrast, the whole euro zone’s GDP remained flat in the same period.
Importantly, along with Greece, Spain and Portugal, Ireland was among the euro zone’s worst hit economies, with the bursting of its property bubble and soaring unemployment. However, Ireland was able to overcome the crisis aftermath.
ECB President Mario Draghi called on the EU governments to introduce structural reforms aimed at creating attractive environment for investors. Meanwhile, Ireland is set to repay the International Monetary Fund the bailout credit.
The Republic of Ireland managed to get approval from the European regulators to conduct an auction selling private investors government bonds. The auction will allow Ireland to repay the IMF €16 billion and cut down €3,785 billion from the interest charge.
Irish analysts hope that the economic recovery has got into gear. So, the country might rely on some tax relief soon.
