Ireland and Greece: A Tale of Two Fiscal Adjustments Post author By Philip Lane Post date March 14, 2013 Jeffrey Anderson of the IIF has a note here. Categories In Uncategorized 4 Comments on Ireland and Greece: A Tale of Two Fiscal Adjustments ← New 10-year bond → The Monti moment? 4 replies on “Ireland and Greece: A Tale of Two Fiscal Adjustments” Whatever about Greece, consistent with most analyses on Ireland, this again is misled by the huge FDI distortions including the impact of tax strategies. Why blame them when the National Treasury Management Agency produced this for institutional investors (note the diversion of services revenues from elsewhere, feeds into Purchasing Managers’ Index survey data: ‘Ireland is exposed to relative outperformance of US economy’ ‘PMI new export orders: services show fastest growth on record’ ‘Exports benefitting from relatively acyclical composition’ @Mh How come the massive fall in chemical exports for January as reported today? Is this a cause for concern long term? @ Fiatluxjnr The pharmaceuticals sector accounts for 10% of GDP but employs just 22,000 people. Together with medical devices, employment is at about 43,000 and the sectors account for 65% of merchandise exports. The impact on the domestic economy is not significant but it affects the fairytale line for international audiences as GDP will be lower. FT video on the recovery: http://video.ft.com/v/2224806631001/Not-so-stunning-recovery-by-Ireland Surely most of the figures in this note must be taken with a pinch of salt. Given that revenue shifting to Ireland represents such a large portion of our “exports”, I’m surprised these figures are still taken seriously. Moreover, Ireland’s GDP should simply cease to be mentioned, given its distortions. Appalling analysis. Comments are closed.