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Assess the performance of the Irish economy in the past 12 months in each of the following areas - Leaving Cert Economics - Question 7 - 2018
Question 7
Assess the performance of the Irish economy in the past 12 months in each of the following areas. (i) Economic growth (ii) Employment / unemployment (iii) Inflation ... show full transcript
Worked Solution & Example Answer:Assess the performance of the Irish economy in the past 12 months in each of the following areas - Leaving Cert Economics - Question 7 - 2018
Step 1
(i) Economic growth
Answer
In the past 12 months, the Irish economy has demonstrated robust economic growth, with the Central Bank projecting a GDP growth rate of approximately 4.4% for 2018 and 3.9% for 2019. Key drivers of this growth include strong domestic consumption and significant investment influenced by favorable international conditions. This growth allows the living standards of Irish citizens to progressively improve, positioning Ireland as one of the fastest-growing economies in the EU.
Step 2
(ii) Employment / unemployment
Answer
Unemployment rates have remained below 6%, with the rate standing at 6.2% in December 2017, a decrease from 7.5% twelve months prior. Male unemployment has seen a decline, while youth unemployment was noted at 11.9%, which is a concern. Employment growth is observed with an increase of 2.9% in early 2018, marked by a rise to 2.24 million jobs. This consistent employment growth indicates a recovery from previous economic challenges.
Step 3
(iii) Inflation
Answer
The inflation rate has been notably low, recorded at 0.5% in February 2018 compared to February 2017. While the labor market is tightening, leading to upward wage pressure, inflation is expected to rise modestly, which is crucial for maintaining price stability and competitiveness.
Step 4
(iv) The size of the National Debt
Answer
Ireland's national debt was approximately €198 billion at the end of the last year, reflecting a 1% increase from the previous year. The General Government Debt was recorded at €211.2 billion. The national debt is roughly 75% of GDP, with projections that it will stabilize at about 60% by the end of 2018. These figures illustrate the ongoing challenges and fluctuations in government borrowing.