We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
THE IMF’S latest quarterly report on Ireland’s financial outlook has raised concerns that Ireland’s economy faces greater ongoing challenges than were anticipated when the bailout was first agreed.
The quarterly report, published this afternoon, says the prospects for growth in the Irish economy have deteriorated as the eurozone enters a projected recession, a move which will hurt Ireland’s export prospects.
“Ireland’s economy faces greater external and domestic challenges than envisaged at theoutset of the programme,” the report bluntly states.
It adds that household spending is likely to decline as the value of property continues to sink and the volume of household debt continues to rise.
Raising similar concerns to a European Commission report published yesterday, the report also says the European banking climate means Irish banks will find it difficult to shrink their operations as had been hoped, as banks will find it tough to sell off their assets.
This, in turn, will make it more difficult for banks to raise cash, and in turn to lend money to households in order to get them spending again.
The report was compiled by the IMF team which visited Ireland in January for the fifth quarterly review of Ireland’s progress under the bailout review, and supplements the release of €3.2 billion in bailout loans to Ireland earlier this week.
The report notes that although the yields on Irish government bonds – the cost to the Irish state of borrowing from the open market and not from the EU-IMF Troika – have fallen, they “remain high, and credit ratings are on negative outlook”.
While Ireland’s economy grew in the first half of 2011 as a result of a boost in exports, this slowed in the second half of the year – and the IMF’s projection for whole-year growth for 2011 implies that figures to be published later this month will confirm Ireland has re-entered recession.
There are positives in the report, however: the update does commend Ireland for getting its government current spending back into surplus in the second half of 2011, while all major fiscal targets for 2011 “were observed with healthy margins”.
“Policy implementation has continued to be strong,” it notes, with banks selling off €15 billion of foreign assets at better prices than had been expected.
Structural reforms had also continued at good speed, while NAMA sold more assets than had been expected, raising €4.4 billion through sales, well ahead of the target of €3.1 billion.
To embed this post, copy the code below on your site
Of course it does, because any economist worth their salt knows that austerity tanks an economy, you utter fucking morons.
Sick to my bollocks of reading this depressing shite, when our we going to have some happy news for a change.
When Sarkozy and Merkel finally get the boot out of office and some legend crashes a bus into the IMF world headquarters.
Well that’s just fantastic timing isn’t it. Bit of a coincidence they saying this now? They must think we are awful gombeens altogether.
Up until now we have been the toast of Europe’s austerity policy for doing so well at taking our medicine…a day or two after a referendum is announced we get this reported. Unfortunately, Diarmaid I can only deduce that is exactly what they think.
Diarmaid
We’ve elected so many gombeens what other impression could be given.
Second bailout on the way?
Couldnt possibly need another, Enda & Co. ‘said so’
Ahh, David you sceptic. Ah, sure didn’t Gilmore say during the week that we do not need a second bailout!! And you know he is true to his word………..aren’t we doing things Frankfurt’s way!
And sure aren’t they telling us to vote yes in the up coming referendum, becasuse we don’t need a second bailout, but just in case!!!!
You need us.Vote yes.
And you are Micheal Henvey????
In fairness to Joan Burton she did not rule one out.
Yes I am.
Is anybody getting sick of this bullsh*t it’s depressing, everyday the same god dam news,. On one hand they say we’re doing well then on the other they put us on ‘Negative outlook’. Which fucking one it is???
What! The only country that has more debt per capita (Public and Private excl. companies) than Greece is in a spot of trouble.
@Teddy O’Shea ……I totally agree with you, I wish they would just shut the fuck up and let us try and get on with it.
At the last election, SF advocated following Icelands path and deafulting on the private banking debt. All of the FG/Labour supoprters claimed that this was ludicrous, as Iceland was a basket-case. I would love to hear these same commentors now say that it was a ludicrous policy. Iceland are back borrowing, with a better credit rating than us, half the unemployment rate, and they are no longer saddled with Banking debt….. grrrrrr ….. Every one of the FG/Labour commentators are soooo full of it. And i have no doubt that they will argue someother crap coming up to the next election (and we will still have FF/FG/Labours banking debt hanging off our necks like a hangmans noose, and not just for our generation,m but our childrens generation also. Well done to you, and thank you for this).
The only waybout of troublevwhen you cannot fund our public spending is austerity. And austerity does work. President Harding achieved it in the US in 1922/3 and Bill Clinton achieved it in the the nineties. See http://clinton5.nara.gov/WH/Accomplishments/eightyears-03.html
Only a badger in a hole for three years couldn’t have known that ‘circumstances are more difficult then was anticipated’ when they agreed the bailout. They’re selling us up the river.
When are we going to see a plan for Ireland burning the bondholders? A viable look at what would happen in that case? There’s a total media blackout on it. Iceland is doing good now, they did it!
We need to look at our FULL TABLE OF OPTIONS NOW, while we STILL HAVE ASSETS and qualified and experienced workers in the country.
Yes Connor..
That’s another point..
We will have no assets left after those self serving spin doctors sell us out.
Then we will be a basket case..
If you think we are been controlled now.!!
Just wait until we have nothing left with no choice but to beg for scraps from the tables of the EU hierarchy .
Have to love the timing of this report…
Noonan is of a different opinion..
He stated that it is all factored in to the budget already :):):):):)
Clueless might be the understatement of the Year..
Nuts… Was just reading an earlier article (9.5hrs before this one) where Michael Noonan is headlined as saying: Our economic data “is not as poor as some were expecting”
I’m just so tired of this all!
The next budget should be fun.
Damn it, I thought we were doing fantastically well the last time they called for a cup of tea and to issue pats on the back…..
i refer this current revelation to the link below.
Brian Lenehan pointed out at the onset of the crisis that the textbook fiscal response to a downturn is first reduce current spending. Secondly reduce capital spending. Finally, increase taxation.
Unfortunately, he ignored his own advise.
The current government has carried on in same vain. Repeating their disasterous attempt at a fiscal correction in 1982. Which was both economically damaging & politically costly to FG/Labour.
Attached: An article on how the US got itself out of depression in 18 months (1921-22).
http://www.washingtonpost.com/opinions/warren-harding-curing-a-depression-through-austerity/2012/01/19/gIQA5VEsEQ_story.html
These boys don’t know their ass from their elbows…it will be what it will be. The banks just got another €530 billion to buy up government bonds…greedy b**tards. Not to give to small business or as new mortages. But to continue to feather their own nests. Doing the job the ECB had been doing for the past number of weeks…buying bonds. Think of it…they get cheap loans which they use to buy bonds and then make a packet on them when they mature. What the feck is fair about that!! This isn’t funny anymore.
Can’t really be surprised at such news,its been semi flagged for some time now as have been its implications. what is remarkable however is the speed with which that stalwart and guardian of fiscal rectitude enda Kenny signed us up to the fiscal compact. We now face reduced revenue and yet we shall be required to adhere to this lunacy,which no doubt shall keep us in chains for years to come,what a marvel of leadership our dear enda is.
No SH1TE,yet our government continues to tell lies to us..
the only thing been protected here is them in government and their massive wages and pensions….
Jimbo
That is exactly where it’s at.
Self serving spin doctors.
If we borrowed from the IMF and IMF only in 2010, the worst ( and it would have been really bad) would be over and we would be on our way to a modest recovery.
But because the EU & ECB are involved and want to bleed us dry to cover their own banks losses our economic life ebbs away slowly.
So you get EU/ECB reports patting us on the head for being good little boys and IMF reports saying things are getting worse
Having just watched the RTE news i have to agree with you.It seems our partners inEurope are more interested in making an example of us than actually helping us.Vote No tell Europe to F*** off and go fully to the IMF.It will be bad but better than the present arrangement.
Now the ECB and IMF have us stuck in a vice, they are going to keep on squeezing us until they have the very last drop of anything of value left in the country. The past and present morons that govern Ireland have given them a blank cheque to fill in any amount that they want to withdraw from Ireland.
Ah no John,
The IMF are our friends, along the ECB etc,
sure aren’t they all our partners, our friends, our colleagues.
Yep, i’m fairly sure that we are in an equal and respectful relationship.
No?
What are the odds we will need another bailout and will need to vote yes in the referendum to access the ESM i can see it as plain as i see this keyboard.
still a NO from me
Do we really these politicians csn sort this out. They can but it will take 20 years. Send them a message vote no.
Distilled Media group own (Adverts.ie, Daft.ie, TheJournal.ie) How interesting!!…..looking after one another. Property prices are on the rise again people go buy houses now cause journal.ie says so!!
John no one at present is that stupid so relax.
Eh, TheJournal.ie doesn’t say so. An ADVERTISEMENT ON THE SITE says so.
Gavan an advertisment which your not allowed comment on which is run by Sherry fitzgerald who are in a working relationship with daft.ie who are owned by journal.ie. This “advertisment” told people the property is on the way up & property has bottomed out when in fact the truth will tell you its the complete opposite (CSO stats showed the biggest drop in property prices in the country and dublin has just had its worst happen for Jan 2012 its the worst drop since the greedy bubble burst). If you think telling the blind public (people like yourself) its ok to buy over inflated property then good luck to you. Too many people are in massive debt because of the media spin looking after themselves. If your that stupid and blind goodluck to you.
IMO…..The journal.ie is an absolute shambles. They’ve moved from just rewriting others’ articles to pushing their own/sponsors’ agenda.
Joe – I’d be interested to hear how you think a piece like this, given that the IMF has literally only published this report this afternoon, we would be pushing any agenda, whether it be our own or those of a sponsor.
Would love to know if the Wanks sorry I mean Banks are buying up any cheap land with all these cheap loans their getting.
IMFuck off
have your say