Philip Inman, economics correspondent for the Guardian writes:

Listening to Irish finance minister Michael Noonan you would think that exporting lots medical devices and gallons of milk is enough to support a vibrant economy. More than that, a few minutes in his company and you might be forgiven for believing this export fever will also bring down one of the biggest debt-to-GDP ratios of any nation in modern history.

But Noonan’s strategy is not built on firm foundations. As such, it is not so much a confidence boost as a trick. And one that is being perpetrated on the Irish people to keep them thinking they are best served by remaining in the euro currency zone and paying back all their debts.

…Today’s GDP figures are testimony to Noonan’s ridiculous optimism. The economy contracted by 1.9% in the third quarter, far worse than expected. To quote the Reuters story: “Ireland was the worst performing economy in the eurozone in the third quarter apart from Greece, which no longer publishes seasonally adjusted figures, marking a stunning reversal of fortune from the second quarter, when it was the second-best in class after Estonia, official data on Friday showed.”

Think of the Irish economy as a cake. The government has managed to cover the top with fresh cream, but inside the mixture is still half-baked, soggy and slowly sinking.

 

Ireland’s Problems Are Far From Over (Philip Inman, Guardian)

(Photocall Ireland)