These authors found that the loss of exchange-rate flexibility and monetary autonomy played important roles in the Irish inflation. For example, a relatively large share of Ireland’s trade is with non-European partners, so that the early weakness of the euro stimulated Irish exports and economic activity disproportionately.
All these economic expansion statistics are encouraging, even for the domestic economy, as luxury sectors such as diamond mining and tourism should derive benefit. Unfortunately, the United Kingdom continues to experience constraints to economic recovery, but it is expected to be out of the woods in due course.