Ireland's economy performed exceptionally well last year, with a growth rate of 7%, significantly higher than that of the United States and on par with China's economic growth. Ireland is also the best-performing region in the Eurozone. However, Ireland's economic growth was not a gift from heaven; investors who have immigrated to Ireland have experienced firsthand that during the financial crisis, the Irish economy was on the verge of collapse, government debt soared, and the unemployment rate exceeded 15%. How exactly did Ireland emerge from these multiple crises?
The path to Ireland's success was relatively simple: Ireland wrote off its banks' bad debts and carried out comprehensive financial reforms.
The Irish government cut spending and focused on export growth. This proved to be a very wise decision, as Ireland's exports began to rise significantly with the depreciation of the Euro.
In fact, Ireland's reforms were not universal. Although Irish Prime Minister Enda Kenny lost his party's majority in the recent general election, he still holds firm power.
Like many countries, especially in Europe, where economic growth has surged, Ireland has become their model and hope.
This Tuesday, when Obama met with Irish Prime Minister Kenny, Obama stated that Ireland's economic recovery has achieved tremendous success.
Ireland has long been considered a tax haven. Many large U.S. corporations have their headquarters in Ireland to avoid taxes. However, the European Commission pointed out that Ireland's real economy is also growing, not just its foreign trade. The EU report noted: "While the economies of peripheral member states have begun to recover, domestic demand in the Eurozone is also driving GDP growth."