The Celtic Tiger

Assess the development and collapse of the Celtic Tiger. Discuss the key factors that led to its dislocation in 2008?
This period of rapid economic growth lasted from the 1990s until 2001, it then began to slow down for a while until 2003 where it rapidly increased again until 2006 and now at the present day we are experiencing a complete change in fortunes as the country has been plunged into a state of recession which has coincided with the recent global economic downturn. However the emergence of the Tiger in 1994 helped to change Ireland from one of the poorest countries in Europe into one of the wealthiest.
Ireland’s economy can be described as a small, open trade-dependent economy and as one of the fastest developing countries in the world. There are a number of different reasons for Irelands Economic growth and all play a large part in how it occurred. One of the most significant reasons for Ireland’s economic growth was their EU membership which provided them access to the single market. Ireland’s membership into the European Union meant that they received a lot of aid to invest in the education system and the physical infrastructure. This made Ireland much more attractive to foreign investors. Before the economic boom hit Ireland, it was really only trading with the UK, but after it occurred; they were now equipped to deal with countries from all over the world. Another significant reason for this economic growth was a lower than average level of corporation tax, currently at 12.5% standard rate and 10% for certain manufacturing companies.Other important factors for Ireland’s economic growth was the IRA cease fire in 1994 this made the country a much more attractive prospect for foreign investment. Also at the time of the ‘boom’ Ireland had a high proportion of population at working age not to mention the increased participation in the labour market especially by females.
As Irelands economic state increased greatly then so did its disposable...