The Emerald Isle has high unemployment and one of Europe’s deepest budget deficits, and is taking some of Europe’s harshest austerity medicine. Economists, however, are starting to feel less dismal about Ireland’s prospects because of the unique nature of its export economy.
Exports account for more than 50% of Ireland’s gross domestic product, ahead of even Germany. And while many euro-zone countries’ exports go to their European neighbors, Ireland sends much of its chemicals, business services, technology and food to the U.S. and U.K. That maximizes the benefit of the falling euro, which has lost approximately 15% against the U.S. dollar and 8% against the British pound since the beginning of the year.
As Ronan notes, it contrasts with the NYT feature, also yesterday.