The Irish Recovery

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Wednesday, 29 May 2013 21:21

Paul Krugman commented on the dubious claim that Ireland's economy is recovering. He noted that its GDP is still well below its pre-crisis level. While this is true, the employment to population (EPOP) ratio might give a better sense of how most people in Ireland might view the situation.

 btp-2013-05-29

Source: OECD.

Through the end of last year Ireland had actually seen a slightly sharper fall in its EPOP than Greece and Spain, the two countries hardest hit by the troika's austerity agenda. Ireland's EPOP had stabilized by 2011 while the EPOPs in Greece and Spain were headed sharply lower, but it is hard to see much of a recovery story here. At the end of 2012 the EPOP in Ireland was still down more than 10 percentage points from its pre-recession level. That doesn't look like much of a success story.