Goodbody: Ireland Once Again Europe's Top Performing Economy In 2015

According to a recent report by Goodbody Stockbrokers, Ireland will be the fastest-growing eurozone economy in 2015 for the second consecutive year. After a 5 percent jump in GDP in 2014, Goodbody analysts predict 4 percent growth in 2015.

A Major Turnaround

Only five years ago, Ireland was one of the “P.I.I.G.S” (Portugal, Italy, Ireland, Greece and Spain) that was dragging the eurozone into crisis over sovereign debt worries. In 2010, Ireland had the world’s highest budget deficit, representing 32 percent of GDP.

What a difference five years makes, as Ireland’s 2015 GDP growth is expected to outpace a surging U.S. economy (projected to grow at 3.1 percent by TIAA-CREFF) and even struggling emerging market economies in Brazil and Russia. In addition, the Irish deficit is expected to dip below 3 percent in 2015.

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A Sustainable Recovery?

According to the Goodbody report, the Irish recovery is solid and based on strong domestic demand. Analysts predict that even the weak consumer spending recovery will begin to pick up in 2015, as the labor market improves, wages increase and the tax burden falls.

Goodbody analysts see other areas of the Irish economy improving as well. “The recovery in the construction sector is expected to improve further as demand for housing and property price increases make it a more attractive environment for development.”

Investing In The Irish Rebound

American investors that believe the Irish recovery is still in its early stages might consider leading Irish stocks that trade on American exchanges, such as the Bank of Ireland (ADR) IRE, CRH PLC (ADR) CRH and Ryanair Holdings plc (ADR) RYAAY.

Disclosure: The author owns shares of Bank Of Ireland.

Image credit: Giuseppe Milo, Flickr