Celtic Tiger - Post-2003 Resurgence

Post-2003 Resurgence

After the slowdown in 2001 and 2002, Irish economic growth began to accelerate again in late 2003 and 2004. Some of the media considered that an opportunity to document the return of the Celtic Tiger — occasionally referred to in the press as the "Celtic Tiger 2" and "Celtic Tiger Mark 2". In 2004, Irish growth was the highest, at 4.5%, of the EU-15 states, and a similar figure was forecast for 2005. Those rates contrast with growth rates of 1% to 3% for many other European economies, including Germany, France, and Italy.

In 2006 there was a surge in Foreign Direct Investment and a net increase of 3,795 in IDA supported jobs with International and Financial Services having the highest growth rate.

The reasons for the continuation of the Irish economic boom were somewhat controversial within Ireland. Sceptics said that the recent growth was merely due to a great increase in property values, and to catch-up growth in employment in the construction sector.

Globally, the U.S. recovery boosted Ireland's economy due to Ireland's close economic ties to the U.S. The decline in tourism as a result of foot and mouth disease and the September 11, 2001 attacks had reversed itself. The recovery of the global information technology industry was also a factor: Ireland produced 25% of all European PCs, and Dell, IBM, Apple and HP all had sizeable Irish operations, with Dell having its major European manufacturing plant in Limerick.

There has been a renewed investment by multi-national firms. Intel had resumed its Irish expansion, Google created an office in Dublin, Abbott Laboratories was building a new Irish facility and Bell Labs were to open a future facility.

Domestically, a new state body, Science Foundation Ireland, was established to promote new science companies in Ireland Maturing funds from the SSIA government savings scheme relaxed consumers' concerns about spending and thus fuelled retail sales growth.

In September 2009, Tánaiste Mary Coughlan, said Ireland had lost ground in international competitiveness every year since 2000.