Ireland was one of the first to go into recession with much of the rest of the world following. Does this mean we’ll come out first?

David Bloch, CEO of the Brightwater Group comments:

When I first asked this question I wasn’t too sure of the answer, but with the news over even the past month, we begin to unravel the route of the recession. I’m now as clear as you that we went into recession because we made some serious mistakes that need to be rectified - and because we were first in, doesn’t mean we’ll be first out.

I’m not, however a doomsayer. In fact, I’ve got a feeling we’re going to bounce back quicker than people think.

The question therefore is how to get out of this mess, but as it’s a worldwide issue, we have to concentrate on Ireland and Europe. From a European perspective there are moves to invigorate lending through an EU initiative. From an Irish perspective I think the first thing to do is get some perspective. Fitch, one of the leading ratings agencies of sovereign debt reconfirmed Ireland as “triple A”. Why wasn’t this news splashed across the front of the Irish Times, The Independent, RTE News etc? It means that (outside Ireland) people still have great faith in the Irish economy in the medium term. We (the government) can borrow money at lower rates, we can attract investment, and we can feel confident of shouting our advantages to the rooftops:

• Ireland has one of the lowest unit labour costs of all Western Countries.
• Irish workers are amongst the most productive.
• The fourth highest per capita GDP of all OECD countries (after Norway, USA an Luxembourg).
• Ireland maintains one of the best annual trade surplus balances in the OECD.
• Ireland has one of the youngest workforces in the world which is a great long term asset.
• One of the most motivated work forces.
• Amongst the lowest corporate tax rate in the OECD

In fact, Ireland is very well placed for long term success (I’ll get to the short term in a moment): Ireland has a government, a political opposition and a people who are united in their commitment to a pro-business stance. This climate is typified by low taxation, the rapid and continuing expansion of infrastructure, the encouragement of further FDI and foreign trade, as well as the development of a highly educated workforce (despite what the papers say). And Ireland will continue to trade on her other advantages such as the English language, her many friends abroad, membership of the EU and even the possibilities afforded by peace in the North and the growth there. Proof of this is provided by the continuing attraction of excellent business into Ireland by the IDA.

In the short term I think we need three things 1. We need to be honest about our problems (e.g. declare all our liabilities now so we know where the bottom is, then we can rise from there) 2. We need to be more positive about our country (we’re all looking to the upbeat US to pull us through) and 3. We need strong leadership! We need leaders who can inspire us to work our way out of this. We live in a great country… nothing’s perfect, but Ireland’s fantastic, so lets work together to show the world how great and united we are. And the prize for being first out of the recession? Ireland plc can buy and expand around the world. Let’s do it!