US investment bank Morgan Stanley has stated that the Irish economy has "turned the corner" and that news of Anglo Irish Bank winding down has provided a "clear future direction" for foreign investors.
In a report entitled "Ireland: Mastering the Challenges Ahead" the investment bank described Ireland as fundamentally different from other European countries because it is "a fully deregulated, fully liberalized, flexible market economy". It added that the country "should be able to adjust to the new post-crisis world better than other euro zone nations” as a result.
The report noted that it is vital for Ireland to regain competitiveness in Europe. Overall predictions were positive as the global bank considered that Ireland is on the road to recovery.
"While we would not read too much into a single quarter, as quarterly GDP data for small, open countries like Ireland are volatile and often subject to sizeable revisions, we believe that the economy has turned the corner."
Concluding the report noted that the outlook for Ireland’s future is promising. “Clearly, Ireland is facing major challenges in the quarters and years ahead. But, if there is one economy in the euro area that could meet such challenges, it is probably the Irish economy, in our view.”
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