Ireland's economy is expected to grow moderately in the year ahead and this will have a major impact on the way in which Ireland's political structure is exercised. The economic growth of the state is facilitated by the high level of employment and the successful execution of policy initiatives by the government. The recovery of the economy depends on how well these policies are implemented. The following discussion highlights some of the most important indicators relating to Ireland's economic recovery.
* During the last three years, there has been a marked improvement in the recovery of the economy and a corresponding increase in the country's economic performance. There was a notable increase in the number of jobs created in the last two years as well as the number of establishments for business. The number of commercial properties too has increased substantially and these represent the main engine of economic growth in the economy. In line with this, the number of foreign direct investment in Ireland has also been on the rise.
* Economic indicators indicate that during the last quarter of 2021, employment rose by just over twelve thousand jobs. However, the unemployment rate actually rose slightly from the previous quarter, which essentially indicates that the economy has not been able to retain its recent momentum despite the positive numbers. The report also indicates that the fall in the quarterly growth was mainly driven by a sharp contraction in the industrial sector. A major contributing factor to the contraction is the lingering housing crisis across the rest of Europe. One of the key indicators for the upcoming economic growth is the release of the quarterly finance figures for the second fiscal year, which is due out later this month. The data is expected to confirm that the economic growth in the second quarter of the year has been impacted by the continuing uncertainties related to the global economy.
* While the above indicators point to a robust recovery, there are still a number of measures that the authorities need to take so as to ensure that the recovery is broad based and is durable. The recovery measures include the release of the quarterly finance figures and a statement detailing the plans and policy measures for the coming months and years. The Finance Minister instructed the banks to maintain stable interest rates and to take steps to strengthen their balance sheet by reducing any potential losses that might arise due to excessive credit risk.
* There are a number of measures aimed at reducing the current deficit that the government has. Ireland's gross domestic product growth is expected to slow down to just over three percent in the second half of the year from the first half which was considered as the pre-eminent period for economic growth. The measures focused on debt management and structural reforms so as to keep the domestic market buoyed up and support the economy in containing the current level of internal imbalances.
* The Central Bank of Ireland has published revised official measures to tighten . . . . . . the grip of the national currency on the domestic monetary system. The measures aim to prevent a weakening of the Irish Pound which could result in a significant hit to the overall economic strength of the economy. These measures also include tighter regulations for foreign direct investment into the country's economy, a reduction in the amount of credit offered to specific sectors of the economy and a review of the over-reliance on exports. The measures aimed at controlling the domestic money flow have resulted in a steady decline in the recent surge in the value of the Pound.