People of Ireland, get ready to hear this phrase pop up in conversations about the economy! 

In this global downturn, Ireland is hurting and will continue to hurt.  The downturn is particularly tough on those who bought property two or more years ago, particularly if the mortgage wasn't fixed rate.  The housing boom is over.  Property values have slumped but at least interest rates appear to be holding steady.  With a large portion of the economy dependent upon exports, the downturn could be exacerbated as other countries start to retrench.  With around 500 American companies in the state, Ireland's economy is inextricably tied to the prospects in the US.  If the US enters a deep recession–and all signs are that the US could be looking at its worse recession since the 1930s–Ireland will suffer too.

In response to a slowing economy and to concerns about the stability of its banks, the Irish government took at the extraordinary step of giving a guarantee to deposits in Irish owned banks.  The guarantee protects about $500 billion in deposits; not surprisingly, this promise has affected the ability of the country to borrow in global credit markets.

With the downturn in full swing, it won't be long before unemployment rises.  Ireland has attracted thousands of foreign workers in the past few years.  Many of those from EU states and some from other countries will be entitled to government assistance should they lose their jobs.  Those already unemployed already receive such benefits.  In every downturn, in every country, people inevitably start to blame immigrants for exacerbating the nation's economic woes.  It will happen in Ireland too.  So, in an attempt to neutralize what follows, get ready to hear the introductory phrase "I'm not a racist, but . . . " punctuate many conversations on the state of the economy.