A) How successful has the government of the Irish Republic been in Essay

A) How successful has the government of the Irish Republic been in running it's economy over the last three years b) Describe and evaluate the main macro econo - Essay Example â€Å"Because Ireland is a small country, FDI The housing market helped helped to sustain growth in the recent years as housing investment has reached almost 16% of GNI, but the market has turned since 2006.on the basis GNI growth is expected to decline from 5% in 2007 to 3% in 2008. The housing market weakness also effected badly on increasing the rate of unemployment from 4% in 2006, to 5.5% in 2008. Ireland enjoyed spectacular growth in tax revenues over the past years but this is affected by the economic declining, the government surplus of 3.5% of GNI has reduced in to .5% in 2007due to the lower property related receipts the real government expenditure has expanded rapidly In the year 2005, Ireland’s employment rates reduced from 14% to 4%, due to the growth in GDP. But in the year 2006 the unemployment rate increased to 4.4% Ireland faces a problem of sustainability from other countries because of the generation gap in population aged over 65, relating to working age population .the current system will unsustainable even with the national pension fund The growth rate in GDP has reached 10%from 1997 to 2000; which in 2005 has reached $169 billion, above the average of EU 25. However, since year 2006 Ireland’s economic growth started to slow down, due to the lower investment spending and more moderate consumption, which is 5.6%, in 2007 at 4.7% and it is projected to slow down further in the coming years. In the past years economic activity remain strong by the strong domestic demand but it is now easing in the short step should be taken to attract the foreign investment. In the longer run, stronger productivity growth and continued increase in participation rates will be needed to sustain a fast pace of real income growth. The easing activity has slow down government revenues and a sharp drop in the fiscal surplus