Language
Country/Area
No result found
A fleeting boom: What's the truth behind the rise and fall of the Celtic Tiger?
From the mid-1990s to the late 2000s, Ireland experienced an economic boom, a period known as the "Celtic Tiger". During this period, Ireland's economy grew at an average annual rate of 9.4%, attracting a large amount of foreign direct investment, and in some respects its growth rate was comparable to that of the four Asian tigers. However, starting from 2008, with the advent of the economic crisis, this illusion of prosperity was quickly shattered, leaving behind a series of far-reaching economic consequences.
"Our shrinkage is like a Titanic-style shipwreck, a sudden plunge from comfort into a cold sea of uncertainty."
In the early 1990s, Ireland's economic situation was relatively poor, with social poverty and unemployment rates remaining high. During this period of transition, the Irish government adopted a number of policies to promote economic growth, including low tax rates, promoting foreign investment and establishing various incentives. These policies have attracted large multinational companies such as Intel and Microsoft to set up headquarters or production bases. The economic boom has significantly improved the living conditions of many Irish people.
"Ireland's economic transformation has transformed what was once the poorest country in Western Europe into one of the richest in the region."
As purchasing power increased, Ireland's consumer spending also increased significantly, especially in international travel. In 2004, more than 91% of domestic holiday spending was spent on overseas travel. However, this prosperity has not come without a price. According to the Economic and Social Research Institute (ESRI), the gap between the richest and poorest households in society widened between 2004 and 2005, with the benefits of economic growth not being evenly distributed.
By mid-2007, when the Celtic Tiger, a symbol of prosperity, had withered, the happy times and sustained growth of the past seemed to be getting further and further away from Ireland. Many economists and commentators predict that the country could face a deep economic recession. In 2008, Ireland's gross domestic product (GDP) is forecast to fall by 14% and unemployment to reach 14%.
"The entire Irish economic experience will become a negative example in future international economic research."
A recession ensued, which lasted until 2014, but in 2015, Ireland's economy grew again, reaching 6.7%, marking the beginning of a new period of prosperity. This marked a rebirth of Ireland as, in a way, Celtic Tiger 2.0.
Yet even with the new growth, the demise of the Celtic Tiger is cause for reflection. What is the truth behind this period? Is it a waste that urgently needs reflection, or is it a structural problem hidden under rapid growth? We can't help but think: How will Ireland avoid repeating the same mistakes in the future?
