Editing Celtic Tiger

{{Short description|Irish economy between 1995 and 2007}}
{{for|the Irish dance show|Celtic Tiger Live}}
{{Use Hiberno-English|date=February 2017}}
{{Use dmy dates|date=October 2017}}
[[File:Historical economic growth of Ireland and the UK.jpg|thumb|right|Historical GDP per capita development of Ireland and the UK]]
[[File:Ireland GDP.webp|thumb|275px|Ireland GDP
{{legend-line|#FF883E solid 3px|Real GDP (chained 2010 [[Euro]]s)}}
{{legend-line|#169B62 solid 3px|Nominal GDP}}
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The "'''Celtic Tiger'''" ({{langx|ga|An Tíogar Ceilteach}}) is a term referring to the [[economy of the Republic of Ireland|economy of Ireland]] from the mid-1990s to the late 2000s, a period of rapid real economic growth fuelled by foreign direct investment. The boom was dampened by a subsequent [[property bubble]] which resulted in a severe economic downturn.

At the start of the 1990s, Ireland was a relatively poor country by Western European standards, with high poverty, high unemployment, inflation, and low economic growth.<ref>{{cite news |last=Alvarez |first=Lizette |title=Suddenly Rich, Poor Old Ireland Seems Bewildered |url=https://www.nytimes.com/2005/02/02/world/europe/suddenly-rich-poor-old-ireland-seems-bewildered.html |work=[[The New York Times]] |date=2 February 2005 |access-date=5 April 2018}}</ref> The Irish economy expanded at an average rate of 9.4% between 1995 and 2000, and continued to grow at an average rate of 5.9% during the following decade until 2008, when it [[Post-2008 Irish economic downturn|fell into recession]]. Ireland's rapid economic growth has been described as a rare example of a Western country matching the growth of East Asian nations, i.e. the '[[Four Asian Tigers]]'.<ref>{{cite news |title=The luck of the Irish |url=https://www.economist.com/node/3261071 |newspaper=The Economist |access-date=5 April 2018}}</ref>

The economy underwent a dramatic reversal from 2008,<ref>[http://imf.org/external/pubs/ft/weo/2011/01/weodata/weorept.aspx?pr.x=51&pr.y=5&sy=1980&ey=2016&scsm=1&ssd=1&sort=country&ds=.&br=1&c=178&s=NGDP_RPCH&grp=0&a=] {{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref> affected by the [[Great Recession]] and ensuing [[European debt crisis]], with [[GDP]] contracting by 14%<ref>{{cite web |url=http://www.esri.ie/UserFiles/publications/20090429104918/QEC2009Spr_ES.pdf |title=Archived copy |access-date=29 April 2009 |url-status=dead |archive-url=https://web.archive.org/web/20140623203211/http://www.esri.ie/UserFiles/publications/20090429104918/QEC2009Spr_ES.pdf |archive-date=23 June 2014}}</ref> and unemployment levels rising to 14% by 2011.<ref>[http://imf.org/external/pubs/ft/weo/2011/01/weodata/weorept.aspx?pr.x=45&pr.y=18&sy=1980&ey=2016&scsm=1&ssd=1&sort=country&ds=.&br=1&c=178&s=LUR&grp=0&a=] {{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref> The recession lasted until 2014. In 2015, the economy posted a growth rate of 6.7% marked the beginning of a new period of strong economic growth.<ref>{{cite news|url=http://www.independent.ie/business/irish/doing-the-maths-how-real-is-irelands-economic-growth-34331206.html|title=Doing the maths: how real is Ireland's economic growth?|newspaper=Irish Independent|date=3 January 2016}}</ref>

== Term ==
The [[colloquial]] term "Celtic Tiger"<ref>{{cite web|url=http://www.irelandinformationguide.com/History_of_rail_transport_in_Ireland |title=Ireland Information Guide, Irish, Counties, Facts, Statistics, Tourism, Culture, How |publisher=Irelandinformationguide.com |access-date=21 November 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111001222814/http://www.irelandinformationguide.com/History_of_rail_transport_in_Ireland |archive-date= 1 October 2011 }}</ref> has been used to refer to the country itself, and to the years associated with the boom. The first recorded use of the phrase is in a 1994 [[Morgan Stanley]] report by Kevin Gardiner.<ref>[https://www.scribd.com/doc/6715664/A-Critical-Perspective Reinventing Ireland: Culture, Society and the Global Economy] (2002) Peadar Kirby, Luke Gibbons, Michael Cronin, p. 17. {{ISBN|0 7453 1825 8}}.</ref> The term refers to Ireland's similarity to the [[East Asian Tigers]]: Hong Kong, Singapore, South Korea, and Taiwan during their periods of rapid growth between the early 1960s and late 1990s. ''An Tíogar Ceilteach'', the [[Irish language]] version of the term, appears in the [[Foras na Gaeilge]] terminology database<ref>{{cite web|url=http://www.tearma.ie/Search.aspx?term=an+T%C3%ADogar+Ceilteach&lang=3116659 |title=Tearma.ie - Dictionary of Irish Terms - Foclóir Téarmaíochta |access-date=18 March 2015 }}</ref> and has been used in government and administrative contexts since at least 2005.<ref>[http://oireachtasdebates.oireachtas.ie/debates%20authoring/debateswebpack.nsf/takes/dail2005041900020?opendocument Irish Parliamentary Debates] - Deputy McGinley: "go speisialta ó tháinig an tíogar Ceilteach chun cinn"</ref><ref>[http://www.president.ie/speeches/annual-showcase-of-young-social-innovators-2012/ Speech by the President of Ireland] {{webarchive|url=https://web.archive.org/web/20131213044817/http://www.president.ie/speeches/annual-showcase-of-young-social-innovators-2012/ |date=13 December 2013 }} "is measa a bhain leis an Tíogar Ceilteach"</ref><ref>[http://www.galway.ie/ga/Seirbhisi/Timpeallacht/BainistiuDramhaiola/Bhileogaeolaislehaghaidhnahearnalateaghlaigh/gaeilge%20travel%20handbook.pdf Galway County Council] {{webarchive|url=https://web.archive.org/web/20131217045611/http://www.galway.ie/ga/Seirbhisi/Timpeallacht/BainistiuDramhaiola/Bhileogaeolaislehaghaidhnahearnalateaghlaigh/gaeilge%20travel%20handbook.pdf |date=17 December 2013 }} - "ó na 1990í i leith an Tíogar Ceilteach"</ref>

The Celtic Tiger period has also been called [[Economic boom|"The Boom"]] or "Ireland's Economic Miracle".<ref>{{cite web |title=The Celtic Tiger: Ireland's Economic Miracle Explained|url=http://www.dublinwastetoenergy.ie/archive/files/info_sessions/Statutory/Processes/Presentation.ppt |archive-url=https://web.archive.org/web/20180903045749/https://www.dublinwastetoenergy.ie/archive/files/info_sessions/Statutory/Processes/Presentation.ppt |url-status=dead |archive-date=3 September 2018 | work=Dublic Water to Energy |access-date=8 August 2009}}</ref>  During that time, the country experienced a period of economic growth that transformed it from one of Western Europe's poorer countries into one of its wealthiest. The causes of Ireland's growth are the subject of some debate, but credit has been primarily given{{by whom|date=June 2014}} to state-driven economic development; [[social partnership]] among employers, government and [[trade union]]s; increased participation by women in the labour force; decades of investment in domestic higher education; targeting of [[foreign direct investment]]; a low [[corporation tax]] rate; an English-speaking workforce; and membership of the [[European Union]], which provided transfer payments and export access to the [[Single Market]].

During the [[2008 financial crisis]], the Celtic Tiger had all but died. Some critics, such as [[David McWilliams (economics pundit)|David McWilliams]], who had been warning about impending collapse for some time, concluded: "The case is clear: an economically challenged government, perniciously influenced by the interests of the housing lobby, blew it. The entire Irish episode will be studied internationally in years to come as an example of how not to do things."<ref>{{cite web|url=http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=DAVID+McWilliams-qqqs=commentandanalysis-qqqid=38577-qqqx=1.asp|title=The Sunday Business Post|access-date=18 March 2015|archive-url=https://web.archive.org/web/20101113070817/http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=DAVID+McWilliams-qqqs=commentandanalysis-qqqid=38577-qqqx=1.asp|archive-date=13 November 2010|url-status=dead|df=dmy-all}}</ref>

Historian Richard Aldous stated the Celtic Tiger has now gone the "way of the [[Dodo (bird)|dodo]]". In early 2008, many commentators thought a [[soft landing (economics)|soft landing]] was likely, but by January 2009, it seemed possible the country could experience a [[Depression (economics)|depression]].<ref>{{cite web|url=http://www.independent.ie/national-news/cowen-must-be-mister-fixit-not-a-master-of-disaster-1586804.html|title=Cowen must be Mister Fix-It, not a master of disaster|work=Independent.ie|access-date=18 March 2015}}</ref>  In early January 2009, ''[[The Irish Times]]'', in an editorial, declared:
"We have gone from the Celtic Tiger to an era of financial fear with the suddenness of a ''[[RMS Titanic|Titanic]]''-style shipwreck, thrown from comfort, even luxury, into a cold sea of uncertainty."<ref>{{cite web|url=https://www.irishtimes.com/newspaper/opinion/2009/0103/1230842387565.html|title=No time for whingers|work=Irish Times|access-date=18 March 2015|archive-date=20 October 2012|archive-url=https://web.archive.org/web/20121020105800/http://www.irishtimes.com/newspaper/opinion/2009/0103/1230842387565.html|url-status=dead}}</ref><ref>{{Cite web|url=http://tribune.ie/article/2009/jan/25/so-who-got-us-into-this-mess/|archiveurl=https://web.archive.org/web/20091010201658/http://www.tribune.ie/article/2009/jan/25/so-who-got-us-into-this-mess/|url-status=dead|title=So Who Got Us Into This Mess?|archivedate=10 October 2009|website=tribune.ie}}</ref>  In February 2010, a report by Davy Research concluded that Ireland had "largely wasted” its years of high income during the boom, with private enterprise investing its wealth "in the wrong places". It compared Ireland's growth to other small [[eurozone]] countries such as Finland and Belgium&nbsp;– noting that the physical wealth of those countries exceeds that of Ireland because of their "vastly superior" transport infrastructure, telecommunications network, and public services.<ref name='davyresearch'>{{cite news | first=Rossa | last=White | title=Fruits of boom largely wasted, says Davy report | date=2 October 2010 | newspaper=[[The Irish Times]] | url=https://www.irishtimes.com/newspaper/finance/2010/0220/1224264879149.html | access-date=20 February 2010 | archive-date=22 January 2011 | archive-url=https://web.archive.org/web/20110122213743/http://www.irishtimes.com/newspaper/finance/2010/0220/1224264879149.html | url-status=dead }}</ref>

== Tiger economy ==
From 1995 to 2000, [[GDP]] growth rate ranged between 7.8 and 11.5%; it then slowed to between 4.4 and 6.5% from 2001 to 2007.<ref name="International Monetary Fund">{{cite web|url = http://www.imf.org/external/pubs/ft/scr/2002/cr02170.pdf |title = IMF Staff Country Report No. 02/170|publisher = International Monetary Fund}}</ref> During that period, the Irish GDP per capita rose dramatically to equal, then eventually surpass, that of all but one state in Western Europe. Although GDP does not represent the [[standard of living]], and the [[GNP]] remained lower than the GDP, in 2007, the GNP achieved the same level as of some other Western European countries'.<ref>[http://www.finfacts.ie/irishfinancenews/article_1025366.shtml Irish Economy: Sustainable growth dependent on foreign firms since 1990] – website article, 22 December 2012</ref> 

=== Causes ===
Historian [[R. F. Foster (historian)|R. F. Foster]] argues the cause was a combination of a new sense of initiative and the entry of American corporations such as [[Intel]]. He concludes the chief factors were low taxation, pro-business regulatory policies, and a young, tech-savvy workforce. For many multinationals, the decision to do business in Ireland was made easier still by generous incentives from the [[IDA Ireland|Industrial Development Authority]]. In addition [[European Union]] membership was helpful, giving the country lucrative access to markets that it had previously reached only through the United Kingdom, and pumping huge subsidies and investment capital into the Irish economy.<ref>R. F. Foster, ''Luck and the Irish: A Brief History of Change 1970-2000'' (2007), pp 7-36.</ref> [[Frederic Mishkin]] has also suggested that the economic boom partly resulted from the [[austerity]] plan of [[Charles Haughey]] (Taoiseach from 1987 to 1992). People and businesses expected a stable economy, boosting their confidence to spend and invest due to anticipated stability in output.<ref>{{Cite web |title=Macroeconomics: Policy and Practice |url=https://www.pearson.com/en-us/subject-catalog/p/macroeconomics-policy-and-practice/P200000005991/9780133424386 |access-date=2024-01-10 |website=www.pearson.com}}{{Page needed|date=January 2024}}</ref>

==== Tax policy ====
Many economists credit Ireland's growth to a low [[corporate tax]]ation rate (10 to 12.5% throughout the late 1990s). Since 1956, successive Irish governments have pursued low-taxation policies.<ref>{{cite news|url=http://www.independent.ie/opinion/editorial/lowtax-policies-created-the-tiger-485406.html| title = Low-tax policies created the Tiger (Ireland's Economy)| access-date = 2 November 2006|work=Irish Independent| date=24 October 2004}}</ref><ref>{{cite web|url=http://www.revenue.ie/budget/budget1997/income.htm#Tax%20Rates,%20Bands%20&%20Tables |title=Budget 1997 |publisher=[[Office of the Revenue Commissioners|Revenue Commissioners]] |access-date=19 May 2007 |archive-url=https://web.archive.org/web/20070517021054/http://www.revenue.ie/budget/budget1997/income.htm |archive-date=17 May 2007 |url-status=dead }}</ref><ref>
{{cite web
 |url=http://www.revenue.ie/index.htm?/budget/budget2007/income_07.htm#4 
 |title=Budget 2007 
 |publisher=[[Office of the Revenue Commissioners|Revenue Commissioners]] 
 |access-date=19 May 2007 
 |archive-url=https://web.archive.org/web/20070928033342/http://www.revenue.ie/index.htm?%2Fbudget%2Fbudget2007%2Fincome_07.htm 
 |archive-date=28 September 2007 
 |url-status=dead 
}}</ref>

==== European Union Structural and Cohesion Funds ====
Since joining the EU in 1973, Ireland has received over €17 billion in EU Structural and Cohesion Funds. These are made up of the [[European Regional Development Fund]] (ERDF) and the [[European Social Fund]] (ESF) and were used to increase investment in the [[Education in the Republic of Ireland|education system]] and to build physical infrastructure.<ref>name = "EU support for Irish Regions"[http://www.iro.ie/EU-structural-funds.html "The Irish Regions Office" Retrieved 28 March 2013] {{webarchive|url=https://web.archive.org/web/20120918031401/http://www.iro.ie/EU-structural-funds.html |date=18 September 2012 }}</ref> These [[transfer payment]]s from members of the [[European Union]], such as [[Economy of Germany|Germany]] and [[Economy of France|France]], were as high as 4% of Ireland's [[gross national product]] (GNP). Ireland is unique among cohesion countries, having allocated up to 35% of its Structural Funds to human resource investments, compared with an average of around 25% for other cohesion fund recipients. The Irish economy's increased productive capacity is sometimes attributed to these investments, which made Ireland more attractive to high-tech businesses,<ref name="heritage">Sean Dorgan {{unfit|1=[https://web.archive.org/web/20100303165903/http://www.heritage.org/Research/WorldwideFreedom/bg1945.cfm "How Ireland Became the Celtic Tiger"]}} The Heritage Foundation: 23 June 2006. Retrieved 6 November 2006.</ref> though the libertarian [[Cato Institute]] has suggested that the EU transfer payments were economically inefficient and may have actually slowed growth.<ref>Benjamin Powell(2003). [http://www.cato.org/dailys/04-21-03.html Markets Created a Pot of Gold in Ireland] {{webarchive|url=https://web.archive.org/web/20080706011854/http://www.cato.org/dailys/04-21-03.html |date= 6 July 2008 }}. Cato Institute. Accessed 4 November 2006.</ref> The conservative [[The Heritage Foundation|Heritage Foundation]] also attributed to transfer payments no significant role in causing growth.<ref name="heritage"/>

==== Trade within the European Union ====
Ireland's membership in the EU since 1973 helped the country gain access to Europe's large markets. Ireland's trade had previously been predominantly with the [[Economy of the United Kingdom|United Kingdom]].<ref name="economist1">[https://www.economist.com/surveys/showsurvey.cfm?issue=20041016 "The luck of the Irish".] ''[[The Economist]]'', 14 October 2004. Retrieved 6 November 2006.</ref>

==== Industrial policies ====
In the 1990s, the provision of [[subsidies]] and investment capital by Irish state organisations (such as [[IDA Ireland]]) encouraged high-profile companies, such as [[Dell]], [[Intel]], and [[Microsoft]], to locate in Ireland; these companies were attracted to Ireland because of its EU membership, relatively low wages, government [[Grant (money)|grants]],<ref>{{cite web |last=Stensrud |first=Christian |title=Industrial policy in the Republic of Ireland: Briefing note |url=https://www.civitas.org.uk/content/files/industrialpolicyintherepublicofireland.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://www.civitas.org.uk/content/files/industrialpolicyintherepublicofireland.pdf |archive-date=2022-10-09 |url-status=live |website=civitas.org.uk |date=October 2016 |access-date=1 February 2019}}</ref> and low tax rates. Enterprise Ireland,<ref name="Home - Enterprise Ireland">{{cite web |title=Home - Enterprise Ireland |url=http://www.enterprise-ireland.com/ |access-date=18 March 2015}}</ref> a state agency, provides financial, technical, and social support to start-up businesses.<ref>{{cite news |last=Flanigan |first=James |title=Entrepreneurship Takes Off in Ireland |url=https://www.nytimes.com/2008/01/17/business/smallbusiness/17edge.html?_r=2&ref=business&oref=login&oref=slogin. |work=The New York Times |date=17 January 2008 |access-date=1 April 2010}}</ref> Additionally, the building of the [[International Financial Services Centre, Dublin|International Financial Services Centre]] in Dublin led to the creation of 14,000 high-value jobs in the accounting, legal, and financial management sectors.<ref>{{cite web |title=I.F.S.C |url=http://www.ifsc.ie/page.aspx?idpage=6 |publisher=I.F.S.C.ie |date=21 June 2010 |access-date=28 March 2013 |archive-date=24 December 2018 |archive-url=https://web.archive.org/web/20181224233819/https://www.ifsc.ie/page.aspx?idpage=6 |url-status=dead }}</ref>

In July 2003, the government established the [[Science Foundation Ireland]]<ref name="sfi.ie">{{Cite web|url=http://www.sfi.ie/about/history/|archiveurl=https://web.archive.org/web/20130312045501/http://www.sfi.ie/about/history/|url-status=dead|title=Web site of Science Foundation Ireland|archivedate=12 March 2013}}</ref> on a statutory basis to promote education for highly skilled careers, particularly in biotechnology and information and communications technology, with the additional purpose to invest in science initiatives that aim to further Ireland's [[knowledge economy]].

==== Geography and demographics ====
The [[time zone]] difference<ref>Proinnsias Breathnach. ''[http://www.geog.ubcca/iiccg/papers/Breathnach_P.html Dublin Calling: Globalisation of a Metropolis on the European Periphery.]''{{dead link|date=May 2014}} Department of Geography, National University of Ireland, Maynooth, County Kildare, Ireland. Accessed 4 November 2006.</ref> allows Irish and British employees to work the first part of each day while US workers sleep. US firms were drawn to Ireland by cheap wage costs compared to the UK, and by the limited government intervention in business {{clarify|date=August 2018}} compared to other EU members, and particularly to countries in Eastern Europe. Growing stability in Northern Ireland brought about by the [[Good Friday Agreement]] further established Ireland's ability to provide a stable business environment.<ref name="economist1"/><ref>Dermot McAleese. [http://ipac.ca/toronto/news_highlights/fall2001/celtic.htm Miracle of the Celtic Tiger: Learning from Ireland's Success] {{webarchive|url=https://web.archive.org/web/20070623164942/http://ipac.ca/toronto/news_highlights/fall2001/celtic.htm |date=23 June 2007 }}. Accessed 4 November 2006.</ref>

Irish workers can communicate effectively with Americans&nbsp;– especially compared to those in other low-wage,{{citation needed|date=August 2018}} non-English-speaking EU nations, such as Portugal and Spain; this factor was vital {{citation needed|date=August 2018}} to U.S. companies' choosing Ireland for their European headquarters. It has also been argued{{By whom|date=July 2013}} that the [[demographic dividend]] from the rising ratio of workers to dependents due to falling fertility, and increased female labour market participation, increased income per capita.{{citation needed|date=July 2013}}

== Impact of economic growth ==
[[File:Irish GDPDebt Ratio Chart.jpg|thumb|right|250px|Public debt as a percentage of GDP dropped significantly over the 1990s.]]
Ireland was transformed from one of the poorest countries in Western Europe to one of the wealthiest.{{citation needed|date=August 2018}} [[Disposable income]] soared to record levels, enabling a huge rise in [[consumer spending]] with foreign holidays accounting for over 91% of total holiday expenditure in 2004. However, the gap between the highest and lowest income households widened in the five-year period to 2004–2005;<ref>{{cite web|url = http://www.cso.ie/en/media/csoie/releasespublications/documents/housing/hbs.pdf |title = Household Budget Survey 2004 -05 |publisher = Central Statistics Office | date= July 2007 | access-date= 28 March 2013}}</ref> in response, the [[Economic and Social Research Institute]] (ESRI) stated in 2002: "On balance, budgets over the past 10 to 20 years have been more favourable to high income groups than low income groups, but particularly so during periods of high growth".<ref name="ESRI Dublin">{{cite web|url = http://www.eurofound.europa.eu/eiro/2002/10/feature/ie0210203f.htm |title = The distributive impact of budgetary policy: A medium term view|publisher = ESRI Dublin | year= 2002 | access-date= 28 March 2013}}</ref>  Unemployment fell from 18% in the late 1980s to 4.5% by the end of 2007,<ref>Central Statistics Office: Quarterly National Household Survey for Q4 2007</ref> and average industrial wages grew at one of the highest rates in Europe. Inflation brushed 5% per annum towards the end of the "Tiger" period, pushing Irish prices up to those of Nordic Europe, even though wage rates are roughly the same as in the UK. The national debt had remained constant during the boom, but the GDP to debt ratio rose, due to the dramatic rise in GDP.<ref>{{cite web|url=http://www.business2000.ie/cases/cases_7th/case21.htm|title=Business 2000&nbsp;– Case Studies for the Classroom. Business Case Studies, Economics Case Studies, LCVP Case Studies<!-- Bot generated title -->|website=business2000.ie|access-date=5 April 2018|archive-url=https://web.archive.org/web/20160304030123/http://www.business2000.ie/cases/cases_7th/case21.htm|archive-date=4 March 2016|url-status=dead}}</ref>

The new wealth resulted in large investments in modernising Irish infrastructure and cities. The [[National Development Plan]] led to improvements in roads, and new transport services were developed, such as the [[Luas]] light rail lines, the [[Dublin Port Tunnel]], and the extension of the [[Cork Suburban Rail]]. Local authorities enhanced city streets and built monuments such as the [[Spire of Dublin]].<ref>{{cite web|title=Regional Programmes Within the National Development Plan 2000-2006 |url=http://www.iro.ie/EU-NDP-2000-2006.html |website=The Irish Regions Office |access-date=28 March 2013 |archive-url=https://web.archive.org/web/20120709041220/http://www.iro.ie/EU-NDP-2000-2006.html |archive-date=July 9, 2012 |date= 9 July 2012 }}</ref> An academic said in 2008 that the jumbo [[breakfast roll]] became "perhaps the ultimate symbol of our contemporary Celtic Tigerland", product of Irish conglomerate [[IAWS]] and eaten by busy workers buying food in [[filling station]] [[convenience store]]s.<ref name="mcdonald20080512">{{Cite news |url=https://www.independent.ie/irish-news/top-breakfast-baguette-rolls-into-irish-history-26445568.html |title=Top breakfast baguette rolls into Irish history |last=McDonald |first=Brian |date=2008-05-12 |work=Irish Independent |access-date=2019-02-03 |language=en}}</ref>

Ireland's trend of net emigration was reversed as the republic became a destination for immigrants.<ref>{{cite web| url = http://www.cso.ie/en/media/csoie/releasespublications/documents/population/2003/popmig_2003.pdf|title = Population and Migration Estimates April 2003 |publisher = Central Statistics Office | date= 10 December 2003 | access-date= 28 March 2013}}</ref>  This significantly changed Irish demographics and resulted in expanding [[multiculturalism]]{{citation needed|date=August 2018}}, particularly in the [[Dublin]], [[Cork (city)|Cork]], [[Limerick]], and [[Galway]] areas.<ref>{{cite web|url = http://www.cso.ie/en/media/csoie/releasespublications/documents/population/2005/popmig_2005.pdf|title = Population and Migration Estimates April 2005 |publisher = Central Statistics Office | date= 14 September 2005 | access-date= 28 March 2013}}</ref>  It was estimated{{who|date=July 2013}} in 2007 that 10% of Irish residents were foreign-born; most of the new arrivals were citizens of Poland and the Baltic states, many of whom found work in the retail and service sectors. A study conducted in 2006 found that many Irish people regarded immigration as an important factor for economic progress.<ref>{{cite web | url = http://www.ssb.no/a/english/publikasjoner/pdf/sa104/attitudes.pdf|title = Attitudes towards immigrants and immigration | publisher = Immigration and immigrants}}</ref>  Within Ireland, many young people left the rural countryside to live and work in urban centres.{{citation needed|date=July 2013}}
Many people in Ireland believe that the growing consumerism during the boom years eroded the [[culture of Ireland|country's culture]], with the adoption of American capitalist ideals. While Ireland's historical economic ties to the UK had often been the subject of criticism, Peader Kirby argued that the new ties to the US economy were met with a "satisfied silence".<ref>Paul Keenan. [http://www.dcu.ie/news/pub/pub4.shtml Book review of Peader Kirby's ''The Celtic Tiger In Distress''.] Accessed 4 November 2006.</ref> Nevertheless, voices on the political left have decried the "closer to Boston than Berlin" philosophy of the [[Government of the 29th Dáil|Fianna Fáil-Progressive Democrat government]].<ref name="independent">{{cite news |url=http://www.independent.ie/business/irish/ffpd-policy-to-blame-for-economic-ills-claims-report-2554051.html |archive-url=https://archive.today/20130218004009/http://www.independent.ie/business/irish/ffpd-policy-to-blame-for-economic-ills-claims-report-2554051.html |url-status=dead |archive-date=18 February 2013 |work=Irish Independent |first=Siobhan |last=Creaton |title=FF-PD policy to blame for economic ills, claims report |date=24 February 2011 |access-date=28 March 2013 }}</ref>  Writers such as [[William Wall (writer)|William Wall]], Mike McCormick, and [[Gerry Murphy (poet)|Gerry Murphy]] have satirised these developments. Growing wealth was blamed for rising crime levels among youths, particularly alcohol-related violence resulting from increased spending power. However, it was also accompanied by rapidly increased life expectancy and very high quality of life ratings; the country ranked first in ''The Economist'''s 2005 quality of life index,<ref>{{cite news|url = https://www.economist.com/media/pdf/QUALITY_OF_LIFE.pdf|title = The Economist Intelligence Unit's quality-of-life index|newspaper = The Economist}}</ref> dropping to 12th by 2013.<ref>{{Cite web | url=https://www.worldatlas.com/articles/the-where-to-be-born-index-the-highest-and-lowest-scoring-countries.html | title=The "Where-to-be-Born" Index: The Highest and Lowest Scoring Countries| date=25 April 2017}}</ref>

The growing success of Ireland's economy encouraged [[entrepreneurship]] and risk-taking, qualities that had been dormant during poor economic periods. However, whilst some semblance of a culture of entrepreneurship exists, foreign-owned companies account for 93% of Ireland's exports.<ref>{{citation|url = http://www.finfacts.ie/irishfinancenews/article_1016593.shtml |title = Irish Economy: Home Truths on Irish Exports as Ireland faces a changed global economy in the decade ahead|date=4 May 2009 |publisher =Finfacts Team}}</ref>

== Slowdown in growth, 2001–2003 ==
The Celtic Tiger's growth slowed along with the slowing in the world economy in 2002 after seven years of high growth.<ref name="International Monetary Fund"/><ref>{{cite web| url = https://www.imf.org/external/pubs/ft/scr/2004/cr04348.pdf | title = Ireland: 2004 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Ireland (IMF Country Report No. 04/348)| author = Ajai Chopra and Martin Fetherston | publisher = International Monetary Fund Publication Services | date = November 2004 | access-date =27 September 2015}}</ref>

The economy was adversely affected by a large reduction in investment in the worldwide information technology (IT) industry. The industry had over-expanded in the late 1990s, and its stock market equity declined sharply. Ireland was a major player in the IT industry: in 2002, it had exported US$10.4 billion worth of computer services, compared to $6.9 billion from the US. Ireland accounted for approximately 50% of all mass-market packaged software sold in Europe in 2002 (OECD, 2002; OECD, 2004).{{citation needed|date=July 2013}}

[[Foot and mouth disease]] and the [[11 September 2001 attacks]] damaged Ireland's tourism and agricultural sectors {{dubious|date=August 2018}}, deterring U.S. and British tourists. Several companies moved operations to Eastern Europe and the [[Economy of China|People's Republic of China]] because of a rise in Irish wage costs, insurance premiums, and a general reduction in Ireland's economic competitiveness.<ref>{{cite web|url = http://www.imf.org/external/pubs/ft/wp/2002/wp02160.pdf |title = IMF Working Paper 02/160 |publisher = International Monetary Fund |access-date=27 March 2013}}</ref> The rising value of the Euro hit non-[[Economic and Monetary Union|EMU]] exports, particularly those to the U.S. and the United Kingdom.{{citation needed|date=July 2013}}

At the same time, economies globally experienced a slowdown. The US economy grew only 0.3% in April, May, and June 2002 from a year earlier, and the [[Federal Reserve]] made 11 rate cuts that year{{which|date=July 2013}} in an attempt to stimulate the US economy. The EU scarcely grew throughout the whole of 2002, and many members' governments (notably in Germany and France) lost control of [[public finance]]s, causing large deficits that broke the terms of the EMU [[Stability and Growth Pact]].{{citation needed|date=July 2013}}

The economic downturn in Ireland was not a [[recession]] but a slowdown in the rate of economic expansion. Signs of a recovery became evident in late 2003, as US investment levels increased once again. Many senior economists have heavily criticised<ref>{{cite web |url = http://www.finfacts.com/irelandbusinessnews/publish/article_10006912.shtml |first = Michael |last = Hennigan |title = Irish Economy 2006 and Future of the Celtic Tiger: Putting a brass knocker on a barn door! |publisher = Finfacts |access-date = 17 May 2007 |archive-date = 21 June 2007 |archive-url = https://web.archive.org/web/20070621154022/http://www.finfacts.com/irelandbusinessnews/publish/article_10006912.shtml |url-status = dead }}</ref> the government for the economic imbalance in favour of the construction industry, and the prospect of sustaining economic growth in the future.{{clarify|date=July 2013}}{{citation needed|date=July 2013}}

=== Post-2003 resurgence ===
[[File:Intel 80486DX2 bottom.jpg|190px|thumb|The information technology sector was a significant factor in the Irish economic boom.]]
After the slowdown in 2001 and 2002, Irish economic growth began to accelerate again in late 2003 and 2004.<ref>{{cite web|url =http://ec.europa.eu/economy_finance/articles/eu_economic_situation/pdf/2011/com2011_11_annex2_en.pdf |title = Annual Growth Survey Annex 2 Macro-Economic Report|publisher = European Commission |date= 12 January 2012 |access-date=28 March 2013}}</ref>  Some of the media considered that an opportunity to document the return of the Celtic Tiger&nbsp;– occasionally referred to in the press as the "Celtic Tiger 2" and "Celtic Tiger Mark 2".<ref name="guardian1">Angelique Chrisafis. [https://www.theguardian.com/international/story/0,3604,1321313,00.html "Celtic Tiger roars again&nbsp;– but not for the poor".] ''[[The Guardian]]'', 7 October 2004. Accessed 6 November 2006.</ref> In 2004, Irish growth was{{Citation needed|date=February 2009}} the highest, at 4.5%, of the [[EU-15]] states, and a similar figure was forecast {{by whom|date=August 2018}} for 2005. Those rates contrast with growth rates of 1% to 3% for many other European economies, including France, Germany, and [[Economy of Italy|Italy]]. The pace of expansion in lending to households from 2003 to 2007 was among the highest in the euro area<ref>{{cite web |url = http://www.centralbank.ie/polstats/stats/summarychart/Documents/ie_financial_statistics_summary_chart_pack.pdf |date = 12 March 2013 |title = Financial Statistics Summary Chart Pack |publisher = [[Central Bank of Ireland]] |access-date = 28 March 2013 |archive-date = 11 August 2018 |archive-url = https://web.archive.org/web/20180811064410/https://www.centralbank.ie/polstats/stats/summarychart/Documents/ie_financial_statistics_summary_chart_pack.pdf |url-status = dead }}</ref>

In 2006, there was a surge in Foreign Direct Investment<ref>{{Cite web|url=https://www.idaireland.com/about-ida-ireland|archiveurl=https://web.archive.org/web/20151016065008/http://www.idaireland.com/news-media/publications/ida-ireland-strategy/ida-ireland-end-of-year-s-2/|url-status=dead|title=About Us &#124; Promoting Foreign Direct Investment (FDI) &#124; IDA Ireland|archivedate=16 October 2015|website=www.idaireland.com}}</ref> and a net increase of 3,795 in IDA supported jobs, with International and Financial Services having the highest growth rate.{{citation needed|date=July 2013}} The reasons for the continuation of the Irish economic boom were somewhat controversial{{Citation needed|date=February 2009}} within Ireland. Some Economists, Civil Rights Activists and Social Commentators have said that the growth throughout this period was merely due to a great [[Irish property bubble|increase in property values]], and to catch-up growth in employment in the construction sector.{{citation needed|date=July 2013}}

Globally, the U.S. recovery boosted Ireland's economy due to Ireland's close economic ties to the US.{{Citation needed|date=February 2009}} The decline in tourism as a result of [[foot and mouth disease]] and the [[11 September 2001 attacks]] had reversed itself.<ref>Press release. [http://www.arts-sport-tourism.gov.ie/publications/release.asp?ID=478 "Minister O'Donoghue welcomes good domestic tourism performance."] {{webarchive|url=https://web.archive.org/web/20110723072906/http://www.arts-sport-tourism.gov.ie/publications/release.asp?ID=478 |date=23 July 2011 }} 27 February 2004. Retrieved 6 November 2006.</ref>{{better source needed|date = August 2018}} The recovery of the global information technology industry was also a factor; Ireland produced{{Citation needed|date=February 2009}} 25% of all European [[Personal computer|PCs]], and [[Apple Computer|Apple]], Dell (whose major European manufacturing plant was in [[Limerick]]),  [[Hewlett-Packard|HP]], and [[IBM]] all had sizeable Irish operations.

There had been a renewed investment by multinational firms. [[Intel]] had resumed its Irish expansion, [[Google]] created an office in [[Dublin]],<ref>Google Ireland Ltd. [https://www.idaireland.com/newsroom/taoiseach-officially-opens-google%E2%80%99s-newest-offices "Tánaiste opens Google Offices in Dublin."] {{webarchive|url=https://web.archive.org/web/20090202140740/http://www.idaireland.com/home/news.aspx?id=9&content_id=227 |date= 2 February 2009 }} 6 October 2004. Retrieved 6 November 2006.</ref> [[Abbott Laboratories]] was building a new Irish facility,<ref>Abbott Ireland (Pharma). [https://www.idaireland.com/newsroom/abbott-and-ida-ireland-an "Abbott&nbsp;– new facility in Longford and expansion in Sligo."] {{webarchive|url=https://web.archive.org/web/20090202140807/http://www.idaireland.com/home/news.aspx?id=9&content_id=319 |date= 2 February 2009 }} 26 April 2005. Retrieved 6 November 2006.</ref> and [[Bell Labs]] planned to open a future facility.<ref>{{cite web|url=http://www.idaireland.com/home/news.aspx?id=274&content_id=192 |title=Bell Labs to Establish Major Research and Development Centre in Ireland |access-date=6 November 2006 |url-status=dead |archive-url=https://web.archive.org/web/20060306183952/http://www.idaireland.com/home/news.aspx?id=274&content_id=192 |archive-date= 6 March 2006 }}</ref>
Domestically, a new state body, [[Science Foundation Ireland]],<ref name="sfi.ie"/> was established to promote new science companies in Ireland<ref>[http://www.entemp.ie/press/2004/20040809.htm "Tánaiste Welcomes Ireland's Action Plan To Promote Investment In R&D To 2010."] {{webarchive|url=https://web.archive.org/web/20090202185742/http://www.entemp.ie/press/2004/20040809.htm |date=2 February 2009 }} Retrieved 6 November 2006.</ref> Maturing funds from the SSIA government savings scheme relaxed consumers' concerns about spending and thus fueled retail sales growth.<ref>{{cite news|url=http://www.timesonline.co.uk/article/0,,2095-1312882,00.html|archive-url=https://web.archive.org/web/20060104223326/http://www.timesonline.co.uk/article/0,,2095-1312882,00.html|url-status=dead|archive-date=4 January 2006| title = Savers boost SSIA funds for €14bn spree| access-date = 2 November 2006 | location=London | work=The Times | first=Andrew | last=Bushe | date=17 October 2004}}</ref>

In September 2009, [[Tánaiste]] [[Mary Coughlan (politician)|Mary Coughlan]] said Ireland had lost ground in international competitiveness every year since 2000.<ref>{{cite web|url=http://www.independent.ie/national-news/lenihan-has-got-figures-all-wrong-1890230.html|title=Lenihan has got figures 'all wrong'|work=Independent.ie|access-date=18 March 2015}}</ref>

== Challenges ==

[[File:The Spire of Dublin from Henry Street 2006-06-16 (cropped).jpg|thumb|upright|The [[Spire of Dublin]] symbolises the modernisation and growing prosperity of Ireland.]]

=== Property market ===
The return of the boom in 2004 was claimed to be primarily the result of the large construction sector's catching up with the demand caused by the first boom. The construction sector represented nearly 12% of GDP and a large proportion of employment among young, unskilled men. A number of sources, including ''[[The Economist]],''<ref>[https://www.economist.com/finance/displayStory.cfm?story_id=4079027 The global housing boom.] ''The Economist'': 16 June 2005. Accessed 4 November 2006.</ref> warned of [[Irish property bubble|excessive Irish property values]]. 2004 saw the construction of 80,000 new homes, compared to the UK's 160,000&nbsp;– a nation that has 15 times Ireland's population. House prices doubled between 2000 and 2006; tax incentives were a key driver of this price rise,<ref>{{cite web|url=http://www.revenue.ie/en/tax/it/leaflets/it65.pdf |title=Tax Reliefs for Owner-Occupied and Rented Residential Accommodation |author=Charlie McCreevy TD Minister for Finance |publisher=Department of the Environment and Local Government/An Roinn Comhshaoil agus Rialtais Aitiuil |url-status=dead |archive-url=https://web.archive.org/web/20111104193158/https://www.revenue.ie/en/tax/it/leaflets/it65.pdf |archive-date=4 November 2011 |df=dmy }}</ref> and the [[Fianna Fáil]]-[[Progressive Democrats]] government subsequently received substantial criticism for these policies.<ref name="independent"/>

In January 2009, [[University College Dublin|UCD]] economist Morgan Kelly predicted that house prices would fall by 80% from peak to trough in real terms.<ref>{{cite web|url=https://www.irishtimes.com/newspaper/finance/2009/0113/1231738220759.html|title=Warning that house prices may fall by 80%|work=Irish Times|access-date=18 March 2015|archive-date=8 October 2012|archive-url=https://web.archive.org/web/20121008125218/http://www.irishtimes.com/newspaper/finance/2009/0113/1231738220759.html|url-status=dead}}</ref>

=== Loss of competitiveness ===
Rising wages, inflation, and excessive public spending<ref>{{cite web| url = http://www.audgen.gov.ie/documents/vfmreports/VFM_51_PPARS_Report.pdf |title=Development of Human Resource Management System for the Health Service (PPARS) | author=John Purcell, Comptroller and Auditor General|date=8 December 2005|work=Report of the Comptroller and Auditor General }}</ref> led to a loss of competitiveness in the Irish economy.<ref>{{cite web| url = http://www.imf.org/external/pubs/ft/wp/2008/wp0802.pdf |title = IMF Working Paper 08/02 Spillovers to Ireland | author=Daniel Kanda |publisher = International Monetary Fund}}</ref> Irish wages were substantially above the EU average, particularly in the Dublin region, though [[Expansion of the European Union|many poorer Eastern European states had joined the EU since 2004]], substantially lowering the average EU wage below its 1995 level. Low-paid sectors, such as retail and hospitality, remained below the EU-15 average, however. The pressures primarily affect unskilled, semi-skilled, and manufacturing jobs. Outsourcing of professional jobs also increased, with Poland in 2008 gaining several hundred former Irish jobs from the accountancy divisions of [[Philips]] and Dell.{{citation needed|date=July 2013}}

=== Promotion of indigenous industry ===
One of the major challenges facing Ireland is the successful promotion of indigenous industry. Although Ireland boasted a few large international companies, such as [[Allied Irish Banks|AIB]], CRH, [[Élan]],  [[Kerry Group]], [[Ryanair]], and [[Smurfit Kappa]], there are few companies with over one billion euros in annual revenue. The government has charged Enterprise Ireland<ref name="Home - Enterprise Ireland"/> with the task of boosting Ireland's indigenous industry and launched a website<ref>{{cite web|url=http://www.basis.ie/|title=Supporting SMEs Online Tool|access-date=18 March 2015|archive-url=https://web.archive.org/web/20060709041234/http://www.basis.ie/|archive-date=9 July 2006|url-status=dead|df=dmy-all}}</ref> in 2003 with the objective of streamlining and marketing the process of starting a business in Ireland.

=== Reliance on foreign energy sources ===
Ireland relied on imported fossil fuels for over 80% of its energy in 2006.<ref>[[Forfás]] (2006).{{cite web|url=http://www.forfas.ie/publications/forfas060404/webopt/forfas060404_irelands_oil_dependence_report.pdf |archive-url=https://web.archive.org/web/20060524143349/http://www.forfas.ie/publications/forfas060404/webopt/forfas060404_irelands_oil_dependence_report.pdf |url-status=dead |archive-date=24 May 2006 |title=''A Baseline Assessment of Ireland's Oil Dependence&nbsp;– key policy considerations.'' }}&nbsp;{{small|(9.88&nbsp;KB)}} Retrieved 8 November 2006.</ref><ref name=ESB>[[ESB Group|ESB]] (2006) {{cite web|url=http://www.dcenr.gov.ie/NR/rdonlyres/54C78A1E-4E96-4E28-A77A-3226220DF2FC/27077/ESBCommentsonGreenPaper.pdf |title=ESB Comments on GreenPaper ''Towards a Sustainable Energy Future for Ireland'' |url-status=dead |archive-url=https://web.archive.org/web/20090318164748/http://www.dcenr.gov.ie/NR/rdonlyres/54C78A1E-4E96-4E28-A77A-3226220DF2FC/27077/ESBCommentsonGreenPaper.pdf |archive-date=18 March 2009 }}&nbsp;{{small|(237&nbsp;KB)}} Retrieved 5 January 2009.</ref>  Ireland for many years in the middle twentieth century limited its dependence on external energy sources by developing its [[peat]] bogs, building various [[hydroelectric]] projects, including a dam at [[Ardnacrusha (village)|Ardnacrusha]] on the [[River Shannon]] in 1928, developing [[Oil platform|offshore]] gas fields, and diversifying into coal in the 1970s. As gas, peat, and hydroelectric power have been almost fully exploited in Ireland, there is a continuously increasing need for imported fossil fuels at a time of increasing concerns about [[peak oil|security of supply]] and [[global warming]]. One solution is to develop alternative energy sources, including [[wind power]] and, to a lesser extent, [[wave power]].

An offshore [[wind farm]] is currently{{when|date=July 2013}} under construction off the east coast near [[Arklow]], and many remote locations in the west show potential for wind farm development. A report<ref>{{cite web|url=http://www.seai.ie/Publications/Statistics_Publications/Renewable_Energy_in_Ireland/Renewable+Energy+in+Ireland+-+2008+Report+%E2%80%93+Focus+on+Wind+Energy+and+Biofuels.pdf|title=Publications - Resources - SEAI|website=Sustainable Energy Authority Of Ireland - SEAI|access-date=5 April 2018|archive-url=https://web.archive.org/web/20160102001957/http://www.seai.ie/Publications/Statistics_Publications/Renewable_Energy_in_Ireland/Renewable%20Energy%20in%20Ireland%20-%202008%20Report%20%E2%80%93%20Focus%20on%20Wind%20Energy%20and%20Biofuels.pdf|archive-date=2 January 2016|url-status=dead}}</ref> by Sustainable Energy Ireland indicated that if wind power were properly developed, Ireland could<ref>{{Cite journal |last1=Johnston |first1=Barry |last2=Al Kez |first2=Dlzar |last3=Foley |first3=Aoife |date=2024-11-15 |title=Assessing the effects of increasing offshore wind generation on marginal cost in the Irish electricity market |url=https://www.sciencedirect.com/science/article/pii/S0306261924012753#:~:text=This%20level%20of%20wind%20installation%20allowed%20Ireland,of%20renewable%20generation%20coming%20from%20wind%20generation.&text=Projections%20for%20wind%20energy%20from%20the%20Sustainable,30%20GW%20offshore%20in%20the%20same%20interval. |journal=Applied Energy |volume=374 |pages=123892 |doi=10.1016/j.apenergy.2024.123892 |bibcode=2024ApEn..37423892J |issn=0306-2619}}</ref> one day be exporting excess wind power if the natural difficulties of integrating wind power into the national grid are solved. Wind power by November 2009 already accounted for 15.4% of total installed generating capacity in the state. By 2020, the Irish government forecasts that 40% of the country's energy needs will come from renewable sources, well above the EU average.<ref>{{cite web | url = http://www.sei.ie/Renewables/Wind_Energy/ | title = Sustainable Energy Authority of Ireland | access-date = 23 January 2010 | archive-url = https://web.archive.org/web/20100121082058/http://www.sei.ie/Renewables/Wind_Energy/ | archive-date = 21 January 2010 | url-status = dead }}</ref>

=== Distribution of wealth ===
Ireland's new wealth is unevenly distributed.<ref name="ESRI Dublin"/> The [[United Nations]] reported in 2004 that Ireland was second only to the US in inequality among Western nations.<ref name="guardian1"/> There is some opposition to the theory that Ireland's wealth has been unusually unevenly distributed, among them economist and journalist David McWilliams. He cites [[Eurostat]] figures which indicate that Ireland is just above average in terms equality by one type of measurement.<ref>{{cite web|url=http://www.davidmcwilliams.ie/2006/11/19/friedman-the-free-thinker|title=Friedman the free thinker - David McWilliams|access-date=18 March 2015|archive-url=https://web.archive.org/web/20090204011229/http://www.davidmcwilliams.ie/2006/11/19/friedman-the-free-thinker|archive-date=4 February 2009|url-status=dead|df=dmy-all}}</ref> Moreover, Ireland's inequality persists by other measurements. According to an ESRI report published in December 2006, Ireland's child poverty level ranks 22nd out of the 26 richest countries, and it is the 2nd most unequal country in Europe.<ref>[http://www.village.ie/Opinion/Editorial/The_promises_of_greed/ village.ie - Editorial: The promises of greed] {{webarchive|url=https://web.archive.org/web/20090202181834/http://www.village.ie/Opinion/Editorial/The_promises_of_greed/ |date= 2 February 2009 }}</ref>

=== Banking scandals ===
''The New York Times'' in 2005 described Ireland as the "Wild West of European finance", a perception that helped prompt the creation of the [[Irish Financial Services Regulatory Authority]].<ref name="nytimes_2005-04-01">{{cite news|url=https://www.nytimes.com/2005/04/01/business/worldbusiness/for-insurance-regulators-trails-lead-to-dublin.html|title=For Insurance Regulators, Trails Lead to Dublin|first1=Brian|last1=Lavery|first2=Timothy L.|last2=O'Brien|date=1 April 2005|access-date=5 April 2018|newspaper=The New York Times}}</ref> Despite its mandate for stricter oversight, the agency never imposed major sanctions on any Irish institution, even though Ireland had experienced several major banking scandals in overcharging of their customers.<ref>{{cite web |url=http://www.independent.ie/business/irish/more-trouble-for-new-chief-as-aib-tops-overcharging-league-26205935.html|title=More trouble for new chief as AIB tops overcharging league|work=Independent.ie|date=13 March 2005 |access-date=18 March 2015}}</ref>  Industry representatives disputed the idea that Ireland may be home to unchecked financial frauds.<ref name="nytimes_2005-04-01"/> In December 2008, irregularities in directors' loans that had been kept off one bank's balance sheet for eight years forced the resignation of the [[Financial Regulator (Ireland)|Financial Regulator]].<ref>{{cite web |url=http://www.independent.ie/opinion/analysis/neary-was-john-cleese-to-fawlty-towers-of-irish-regulation-1598157.html|title=Neary was John Cleese to Fawlty Towers of Irish regulation|work=Independent.ie|access-date=18 March 2015}}</ref><ref>{{cite web|url=http://www.independent.ie/national-news/financial-crisis/if-fitzpatrick-lived-in-new-york-he'd---have-been-arrested-1605179.html|title=If FitzPatrick lived in New York, he'd have been arrested|work=Independent.ie|access-date=18 March 2015}}</ref> Economic commentator David McWilliams has described the collapse of [[Anglo Irish Bank]] as Ireland's [[Enron]].<ref>{{cite web|url=http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=DAVID+McWilliams-qqqs=commentandanalysis-qqqid=38862-qqqx=1.asp|title=The Sunday Business Post|access-date=18 March 2015}}{{dead link|date=January 2018 |bot=InternetArchiveBot |fix-attempted=yes}}</ref>

{{update|date=March 2018}}

== Contraction of the Tiger ==
[[File:Ireland bond prices.webp|thumb|300px|Ireland bond prices, [[Inverted yield curve]] in 2011<ref>[https://www.researchgate.net/figure/a-Irish-yield-curve-dynamics-around-2011-loan-amendments-b-Portuguese-yield-curve_fig2_342609297 Figure 3. Irish yield curve]</ref>
{{legend-line|#FF8200 solid 3px|15 year bond}}
{{legend-line|#009A44 solid 3px|10 year bond}}
{{legend-line|#88FA4E solid 3px|5 year bond}}
{{legend-line|#970E53 solid 3px|3 year bond}}
]]
[[File:European debt to GDP ratios.webp|thumb|300px|European debt to GDP ratios
{{legend-line|#001489 solid 3px|[[Greece]] }}
{{legend-line|#CD212A solid 3px|[[Italy]] }}
{{legend-line|#F1BF00 solid 3px|[[Spain]] }}
{{legend-line|#046A38 solid 3px|[[Portugal]] }}
{{legend-line|#970E53 solid 3px|[[France]] }}
{{legend-line|#FF8200 solid 3px|[[Ireland]] }}
{{legend-line|#000000 solid 3px|[[Germany]] }}
]]
In an economic analysis, the Economic and Social Research Institute (ESRI) on 24 June 2008 forecast the possibility the Irish economy would experience marginal negative growth in 2008. This would be the first time since 1983.<ref>{{cite web|url=http://www.independent.ie/national-news/we-blew-the-boom-1419958.html|title=We blew the boom |work=Independent.ie|access-date=18 March 2015}}</ref> Outlining possible prospects for the economy for 2008, the ESRI said output of goods and services might fall that year—which would have been the Irish definition of a mild recession. It also predicted a recovery in 2009 and 2010.<ref>{{cite web|url=https://www.irishtimes.com/newspaper/frontpage/2008/0624/1214257072258.html|title=ESRI warns of recession, job losses and renewed emigration|website=irishtimes.com|access-date=5 April 2018|archive-date=11 October 2012|archive-url=https://web.archive.org/web/20121011061105/http://www.irishtimes.com/newspaper/frontpage/2008/0624/1214257072258.html|url-status=dead}}</ref><ref>{{cite web|url=http://www.finfacts.ie/irishfinancenews/article_1013998.shtml|title=Recession Ireland 2008: It may be like a Feast and a Famine as Celtic Tiger declared dead but all is not lost|access-date=18 March 2015}}</ref><ref>{{cite news| url=http://www.rte.ie/news/2008/0710/economy1.html | work=RTÉ News | title=Management of economy is 'vital' | date=10 July 2008}}</ref>{{update inline|date=August 2013}}

In September 2008, Ireland became the first eurozone country to officially enter [[recession]]. The recession was confirmed by figures from the [[Central Statistics Office (Ireland)|Central Statistics Office]] showing the bursting of the property bubble and a collapse in consumer spending that terminated the boom that was the Celtic Tiger.<ref>{{cite web|url=http://www.irishexaminer.com/irishexaminer/pages/story.aspx-qqqg=ireland-qqqm=ireland-qqqa=ireland-qqqid=73270-qqqx=1.asp|title=Celtic Tiger dead as recession bites|newspaper=[[Irish Examiner]]|date=26 September 2008|access-date=18 March 2015|url-status=dead|archive-url=https://web.archive.org/web/20090202103830/http://www.irishexaminer.com/irishexaminer/pages/story.aspx-qqqg=ireland-qqqm=ireland-qqqa=ireland-qqqid=73270-qqqx=1.asp|archive-date=2 February 2009|df=dmy-all}}</ref><ref>{{cite web|url=https://www.irishtimes.com/newspaper/breaking/2008/0929/breaking58.html|title=Gilmore says Govt has no strategy to get out of recession|work=Irish Times|access-date=18 March 2015|archive-date=8 October 2012|archive-url=https://web.archive.org/web/20121008125249/http://www.irishtimes.com/newspaper/breaking/2008/0929/breaking58.html|url-status=dead}}</ref>  The figures show the gross domestic product (GDP), which measures the value of all the goods and services produced in the State, fell 0.8% in the second three months of 2008 compared with the same quarter of 2007. That was the second successive quarter of negative economic growth, which is one definition of a recession. The Celtic Tiger was declared dead by October 2008.<ref>{{cite web|url=http://www.finfacts.ie/irishfinancenews/article_1014898.shtml|title=Irish Economy: State bank guarantee tolls the death knell of the Celtic Tiger; Fairytale ends debunking the myths and exposing the reality of foundations built on quicksand|website=finfacts.ie|access-date=5 April 2018}}</ref>

In a November 2008 interview in'' [[Hot Press]],'' in a grim assessment of where Ireland stood, then Taoiseach [[Brian Cowen]] said many people still did not realise how badly shaken the public finances were.<ref>{{cite web|url=http://www.herald.ie/national-news/cowen-public--needs-to-wake-up-to-current-financial-crisis-1524706.html|title=Cowen: Public needs to wake up to current financial crisis|work=Herald.ie|access-date=18 March 2015|archive-date=26 July 2010|archive-url=https://web.archive.org/web/20100726075413/http://www.herald.ie/national-news/cowen-public--needs-to-wake-up-to-current-financial-crisis-1524706.html|url-status=dead}}</ref>
By 30 January 2009, Ireland's government debt had become the riskiest in the euro zone, surpassing Greece's sovereign bonds, according to credit-default swap prices.<ref>{{cite web|url=https://www.irishtimes.com/newspaper/breaking/2009/0130/breaking42.html?via=mr|title=Ireland's Gov't debt now rated riskiest in Europe|work=Irish Times|access-date=18 March 2015|archive-date=13 October 2012|archive-url=https://web.archive.org/web/20121013131220/http://www.irishtimes.com/newspaper/breaking/2009/0130/breaking42.html?via=mr|url-status=dead}}</ref>  In February 2009, Taoiseach Brian Cowen said that Ireland's economy appeared on course to contract by 6.5% in 2009.<ref>{{cite web|url=https://www.nytimes.com/|title=Breaking News, World News & Multimedia|website=[[The New York Times]]|access-date=5 April 2018}}</ref>

== Aftermath ==
Former Taoiseach [[Garret FitzGerald]] blamed Ireland's dire economic state in 2009 on a series of "calamitous" government policy errors. Between the years of 2000 and 2003 the then Finance Minister [[Charlie McCreevy]] boosted public spending by 48% while cutting [[income tax]]. A second problem occurred when government policies allowed, or even encouraged, a housing [[bubble (economics)|bubble]] to develop, "on an immense scale".<ref>{{cite web |url=http://www.independent.ie/national-news/fitzgerald-says-crisis-started-with-mccreevy-1606203.html |archive-url=https://web.archive.org/web/20121017171846/http://www.independent.ie/national-news/fitzgerald-says-crisis-started-with-mccreevy-1606203.html |url-status=dead |archive-date=17 October 2012 |title=FitzGerald says crisis started with McCreevy |work=Independent.ie |access-date=18 March 2015 }}</ref>  However, he wrote nothing of the impact of the [[European Central Bank]]'s low interest rates which funded the property bubble and further exacerbated the overheating economy<ref>{{cite web|url=http://www.independent.ie/opinion/editorial/look-to-boston-not-to-berlin-26232084.html|title=Look to Boston, not to Berlin|work=Independent.ie|date=7 June 2003 |access-date=18 March 2015}}</ref>

Nobel laureate [[Paul Krugman]]<ref>{{cite news|url=https://www.nytimes.com/column/paul-krugman|title=Paul Krugman|date=4 April 2018|access-date=5 April 2018|newspaper=The New York Times}}</ref> had a bleak prediction,<ref>{{cite news| url=https://www.nytimes.com/2009/04/20/opinion/20krugman.html?_r=1 | work=The New York Times | title=Erin Go Broke | first=Paul | last=Krugman | date=20 April 2009 | access-date=1 April 2010}}</ref><ref>{{cite web|url=http://www.independent.ie/lifestyle/so-how-much-damage-has-the-new-york-times-really-done-to-ireland-1719661.html|title=So, how much damage has the New York Times really done to Ireland?|work=Independent.ie|access-date=18 March 2015}}</ref>
''“As far as responding to the recession goes, Ireland appears to be really, truly without options, other than to hope for an export-led recovery, if and when the rest of the world bounces back.”''

The [[International Monetary Fund]] in mid-April 2009 forecast a very poor outlook for Ireland. It projected that the Irish economy would contract by 8 per cent in 2009 and by 3 per cent in 2010&nbsp;– and that might be on the optimistic side.<ref>{{cite web|url=http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=VINCENT+BROWNE-qqqs=commentandanalysis-qqqid=41280-qqqx=1.asp|title=The Sunday Business Post|access-date=18 March 2015|url-status=dead|archive-url=https://web.archive.org/web/20090701133709/http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=VINCENT+BROWNE-qqqs=commentandanalysis-qqqid=41280-qqqx=1.asp|archive-date=1 July 2009|df=dmy-all}}</ref><ref>{{cite web|url=https://www.irishtimes.com/newspaper/frontpage/2009/0422/1224245137788.html|title=IMF warns Ireland will pay highest price to secure banks|website=irishtimes.com|access-date=5 April 2018|archive-date=13 October 2012|archive-url=https://web.archive.org/web/20121013212900/http://www.irishtimes.com/newspaper/frontpage/2009/0422/1224245137788.html|url-status=dead}}</ref>

On 19 November 2010, the Irish government began talks on a [[Ireland and the International Monetary Fund|multibillion-dollar economic assistance package]] with experts from the International Monetary Fund ([[IMF]]) and the European Union. Unemployment in Ireland was forecasted to rise almost 17 per cent in 2010, the Economic and Social Research Institute (ESRI) stated in a report published on 28 April 2009,<ref>{{cite web|url=https://www.irishtimes.com/newspaper/breaking/2009/0429/breaking18.html?via=mr|title=Unemployment to hit 17% - ESRI|work=Irish Times|access-date=18 March 2015|archive-date=13 October 2012|archive-url=https://web.archive.org/web/20121013214644/http://www.irishtimes.com/newspaper/breaking/2009/0429/breaking18.html?via=mr|url-status=dead}}</ref> however, the unemployment rate in 2010 steadied at 14%. In 2010, the unemployment rate was at 14.8 per cent, and in order to escape economic downfall, Ireland requested €67.5 billion ($85.7 billion) from the International Monetary Fund and members of the euro area. Taking the money meant accepting austerity.

The [[economic contraction]] in Ireland ended in 2015, when the economy began growing. The economy began outpacing the rest of the [[European Union]] after this period.<ref>{{Cite web|url=https://www.independent.ie/business/irish/irish-economy-to-grow-54pc-this-year-despite-61pc-inflation-eu-41653812.html|title=Irish economy to grow 5.4pc this year despite 6.1pc inflation – EU|website=independent|date=16 May 2022 }}</ref> The economy of Ireland continued to grow in 2022 rising by 11%, although projected [[2022 stock market decline|to slow]].<ref>{{cite news|url=https://www.irishtimes.com/business/2022/06/03/irish-economy-grows-by-nearly-11-in-first-quarter/|title=Irish economy grows by nearly 11% in first quarter|author=Eoin Burke-Kennedy|newspaper=[[The Irish Times]]}}</ref>

==Cultural impact==

The Celtic Tiger had more than just an economic impact, impacting also Ireland's social backdrop. 2007 research by the Economic and Social Research Institute, prior to the crash, found that fears over wider social inequality, declining community life, and a more selfish, materialist approach to life were largely unfounded, and that the social impact of the Celtic Tiger had largely been positive. The economic boom led to lower levels of emigration and higher immigration than had historically been the case, while the government of the time acknowledged the continuing strain on some public services and that the "provision of social housing, childcare and the integration of newcomers" remained political priorities.<ref>{{cite news | author=<!--Staff writer(s); no by-line.--> | title=Social effects of the Celtic Tiger | url=https://www.irishtimes.com/opinion/social-effects-of-the-celtic-tiger-1.1212643 | newspaper=The Irish Times | date=29 June 2007 | access-date=23 October 2018 | quote = Taoiseach Bertie Ahern acknowledged [..] complex social challenges [..including..] the provision of social housing, childcare and the integration of newcomers }}</ref><ref>{{cite book | url=https://www.esri.ie/pubs/BKMNEXT96.pdf | title=Best of Times? The Social Impact of the Celtic Tiger | year=2007 |editor=Tony Fahey |editor2=Helen Russell |editor3=Christopher T. Whelan | publisher=Economic and Social Research Institute | location=Dublin, Ireland | isbn=978-1-904541-58-5 | access-date=23 October 2018 | archive-url=https://web.archive.org/web/20171128032341/https://www.esri.ie/pubs/BKMNEXT96.pdf | archive-date=28 November 2017 | url-status=dead | df=dmy-all }}</ref>

== See also ==
*[[Baltic Tiger]]
*[[Economy of the Republic of Ireland]]
*[[Ghost estate]]
*[[Put on the green jersey|Green Jersey Agenda]]
*[[Gulf Tiger]]
*[[PIGS (economics)]]
*[[Post-2008 Irish banking crisis]]
*[[Tatra Tiger]]
*[[Tiger Cub Economies]]

== References ==
{{Reflist|30em}}
[http://www.economist.com/media/pdf/QUALITY_OF_LIFE.pdf]

{{authority control}}

{{Irish downturn}}{{Economy of Ireland}}{{Economic miracle and tiger economy}}
{{Ireland topics}}

[[Category:Tiger economies]]
[[Category:Economic history of the Republic of Ireland]]
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[[de:Wirtschaft Irlands#Keltischer Tiger]]