Ireland is set for a dramatic economic recovery well ahead of other troubled European nations according to two leading sources.
An interview with billionaire investor Wilbur Ross on CNBC and an op-ed in the Financial Times by two leading Oxford economists both made the same point-- that Ireland was on the cusp of a remarkable comeback.
Wilbur Ross, chairman of WL Ross & Co., stated he liked Ireland very much as a place to invest.
“We like Ireland very much because, unlike the Club Med countries, it doesn’t need structural reform of the economy,” Ross said ton CNBC. “All it really needs is to get through the system the financial crisis that was caused when its banks went berserk. But Ireland fundamentals are still there.”
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Ross, 73, said his firm has “great confidence that Ireland’s economy, while it’s moribund right now, will be the first in Europe to recover.”
Meanwhile in the Financial Times, David Vines and Max Watson two leading Oxford University economists made the same point.
“The first and most important thing about Ireland is that it is swiftly restoring its competitive edge. ….The second element is that Ireland’s net public debt will probably peak at somewhere around 110 per cent of GDP. This is a steep challenge; but it is a magnitude that Ireland, among other advanced countries, has shown to be entirely scalable in the past. It is increasingly clear, too, thatIreland does not need to borrow from markets until 2014: that is the sort of borrower that markets can relearn to love.
The third issue is Ireland’s banking saga....But today there is a growing recognition that this corner has been turned. ...As a result of all this growth is starting to re-emerge, even though domestic demand is still contracting....Perhaps most important of all, an Irish success story of the kind we think is underway will come to be seen as a precious and crucial trump card for the eurozone debt strategy..” they wrote.