The sharp and sustained increase in Ireland's housing prices well in excess of income growth, together with rapidly declining affordability for new house buyers, raises concerns that expectations-led demand may have resulted in housing prices overshooting their sustainable levels. The paper...

Ireland continues to achieve spectacular economic growth. Strains associated with the rapid growth have become more visible. Fiscal policy should be tightened to restrain excess demand pressures. Strict adherence to the agreed wage increases under the Programme for Prosperity and Fairness (PPF)...

The economic and financial pressures facing Ireland are intense. The banking sector is at the fulcrum of Ireland’s problems. The program, therefore, aims to restore the banking system. It will address structural problems and restore confidence. A leaner and more robust banking sector is the...

The Executive Board approved a three-year Extended Arrangement under the Extended Fund Facility (EFF) for Ireland under the exceptional access policy and Emergency Financing Mechanism (EFM). Political developments have been turbulent. The authorities are moving ahead with a comprehensive...

Irish policymakers have gained significant credibility, through assertive steps, to deal with the most potent sources of vulnerability. A continuation of vigorous policy efforts is required with an emphasis on risk management. Much progress has been made on the financial stability agenda, but a...

The Irish financial sector has continued to perform well since its participation in the Financial Sector Assessment Program (FSAP) in 2000. Although the outlook remains very strong for 2006–07, there are some macroeconomic risks that could have implications for the financial system asset...

This Selected Issues paper examines the competitiveness of the Irish manufacturing sector. The paper highlights that in 2001, production cuts and accelerating wage growth arrested the trend improvement in external competitiveness, but the level remains high. The paper presents some medium-term...

This 2007 Article IV Consultation highlights that economic performance of Ireland remains strong, supported by sound policies. The growth rate of real GNP per capita continues to be one of the highest among advanced economies and the unemployment rate one of the lowest. However, in recent years,...

This Selected Issues paper discusses Ireland’s trade and financial linkages with key partner countries. The paper uses a vector autoregression to examine the impact of shocks to partner country GDP and shocks to Irish competitiveness on Irish GDP. Two main findings are that shocks to U.S. GDP...

Following years as a star performer, Ireland is undergoing a painful adjustment as critical internal imbalances unwind. This 2009 Article IV Consultation highlights that the banking system of Ireland is under considerable stress as asset quality has deteriorated and the global financial crisis...