Introduction
The COVID-19 epidemic triggered a global economic upheaval that reverberated throughout countries. As nations strive to stabilize and promote economic development in a post-pandemic era, examining other economies’ paths and measures offers valuable points of comparison. This study analyses and compares the pandemic recovery strategies and present prospects of the Irish and Indian economies from 2021 to 2023. Monitoring crucial metrics such as GDP growth, unemployment rate, and energy inflation in conjunction with fiscal and monetary measures provides insights into different strategies’ comparative advantages, drawbacks, and efficacy.
Forecast of macroeconomic performance for the Years 2021–2023
Ireland’s GDP rose 13.5% in 2021 after falling 5.9% in 2020. This rise was noteworthy. In 2022, the rate at which people lacked jobs was 5.0%, compared to 5.8% in 2020. (Fleming et al., 2022). In 2022, the growth rate in energy costs peaked at 51%. Through a negative deviation of 6.6% in 2020, India’s GDP increased by 8.7% in 2021. In 2022, the rate of joblessness fell from 7.9% to 7.2% (Wang et al., 2023). In 2022, India’s energy inflation skyrocketed to 46%.
Economic policies aimed at achieving stability and equilibrium in the economy.
Ireland enacted expansionary fiscal policies, including creating a €5 billion Recovery Fund to support companies and short-term wage subsidies. These initiatives, which total 3.5% of the nation’s GDP, are meant to hasten economic recovery (Chang et al., 2022). The goal is to preserve economic development while progressively reducing the budget deficit to build financial reserves. The government removed Lockdown restrictions in the third quarter of 2021, as over 75% of the populace had obtained all recommended vaccinations. To reduce inflationary pressures, the central bank began a steady increase in interest rates in October 2021. By 2022, rates had risen from almost nonexistent to over 3%.
India placed a high emphasis on vaccination campaigns, resulting in more than 75% of people receiving at least one shot by the first quarter of 2022. This has facilitated the reopening of the economy. The implementation of a gradual tightening of monetary policy began in mid-2021 as a preemptive measure against the increasing consumer inflation, which was approaching 7% (Wang et al., 2023). According to Tenget et al. (2022), Significant fiscal stimulus measures, amounting to around 10% of the Gross Domestic Product (GDP) between 2020 and 2022, resulted in revenue reductions yet effectively delivered crucial financial assistance.
Efficacy of Policies
Ireland’s proactive implementation of stimulus measures and carefully controlled tightening of monetary policy have facilitated a rapid recovery in economic growth and decreased inflation. However, it is essential to note that there are still existing financial concerns (Chang et al., 2022). India’s fiscal stimulus and vaccination efforts were crucial in preventing a worse catastrophe. However, the increasing deficits and inflation threaten the country’s economic prospects (Tenget et al., 2022). Both economies had a post-pandemic recovery due to government support, a rebound in demand, and prompt implementation of measures to control economic activity. However, the presence of chronic inflation and debt commitments may provide challenges in the future. Ensuring growth requires continuous improvement in productivity and the increase of social welfare.
Conclusion
Although Ireland and India have seen robust initial recoveries from the economic slowdown caused by the epidemic, their long-term stability is still at risk due to global challenges such as inflation. This stability has been achieved by implementing effective fiscal and monetary policies. The efficacy of stimulus methods varied between the calibrated Irish responses and the broader Indian deficits. To solidify economic prospects, it is crucial to maintain ongoing efforts to increase productivity and simultaneously enhance social welfare. Analyzing intricate policy combinations and tracking essential metrics throughout 2021-2023 offers a valuable examination of how governments might endeavor to revive economies in times of crisis. However, the persistent problem of long-term resilience persists.
References
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Fleming, P., Thomas, S., Williams, D., Kennedy, J., & Burke, S. (2022). Implications for health system reform, workforce recovery and rebuilding in the context of the Great Recession and COVID-19: a case study of workforce trends in Ireland 2008–2021. Human Resources for Health, 20(1), 1–11.
Teng, B., Wang, S., Shi, Y., Sun, Y., Wang, W., Hu, W., & Shi, C. (2022). Economic recovery forecasts under impacts of COVID-19. Economic modeling, 110, 105821.
Wang, J., Cui, M., & Chang, L. (2023). Evaluating economic recovery by measuring the COVID-19 spillover impact on business practices: evidence from Asian markets intermediaries. Economic Change and Restructuring, 1-22.
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