Ireland and the economic crisis
Ireland has been severely affected by the economic crisis owing mainly to the bursting of its real estate bubble in 2007. The crisis led to a dramatic decline in real estate prices and was a major factor in the financial and banking crisis, causing Ireland to enter recession in 2008 – which means that the economy underwent a period of decline, unemployment figures soared, numerous bankruptcies resulted and many businesses were forced into closure, and inflation and GDP declined. Ireland’s budget balance seems to be in remission from a severe state deficit in 2010. It continues to show negative figures to this day.
Ireland was not the only country to be hit severely by the economic crisis, other countries are also suffering: Portugal, for example, reported an ever higher national debt than Ireland in 2012 and an even higher state deficit. Spain is another casualty; it has been reporting extraordinarily high unemployment figures since 2008, the rate of unemployment is still on the rise . The country suffering most due to the economic crisis, however, was and still is Greece, with a national debt almost one-and-a-half times as large as Ireland’s at times, and an unemployment rate to rival that of Spain, as well as a devastated economy.
As for Ireland, the International Monetary Fund (IMF) and the European Union's European Financial Stability Facility (EFSF) agreed to support the country financially with a loan in 2010. However, the country is still not out of recession and might struggle to secure economic recovery for another few years at least.