The Irish Miracle PoseS Problems for a Stagnant Post-Brexit United Kingdom

​Over the past five years, the Republic of Ireland's (Ireland) economy has significantly outpaced the United Kingdom regarding GDP growth. Despite global economic challenges, Ireland experienced robust growth driven by its export sector, educated populace, progressive governance, multinational corporations, and favorable tax policies. While the United Kingdom (U.K.) initiated an exit from the European Union (E.U.), Ireland remained, and the economic consequences have been dramatic. This contrast threatens the basis of the United Kingdom and will result in substantial changes shortly.

Once Overrun by the British, Ireland is Proud of Its History and Its Progressive Governance

The Republic of Ireland is a sovereign state occupying about five-sixths of the island of Ireland, located in Northwestern Europe. Its capital and largest city is Dublin.

Key facts:

• Population - Approximately 5.1 million (as of 2022).
• Official languages - Gaelic and English.
• Government -Unitary parliamentary constitutional republic.
• Currency – Euro.

Ireland is known for its rich culture, including literature, music, and dance. The country has a temperate maritime climate and is famous for its green landscape, earning it the nickname "The Emerald Isle."
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Economically, Ireland is a highly developed country focusing on services and high-tech industries. It's also known for its neutrality in international affairs and is a member of the European Union.

Northern Ireland's Population is Now Majority Catholic, Another Factor in Possible Reunification Movements

The U.K.  is composed of four countries:

• England – The largest and most populous country, located in the southern part of the island of Great Britain. Its capital is London.
• Scotland – Located north of England, Scotland occupies the northern third of Great Britain. Its capital is Edinburgh.
• Wales – Situated to the west of England, Wales forms part of the western region of Great Britain. Its capital is Cardiff.
• Northern Ireland – Located on the northeastern part of the island of Ireland, separate from Great Britain. Its capital is Belfast.

 
These four countries together form the sovereign state known as the United Kingdom.​
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Brexit refers to the United Kingdom's withdrawal from the European Union (E.U.), which officially occurred on January 31, 2020. Here's a brief overview:

• Origin: The term "Brexit" is a portmanteau of "British" and "exit."
• Referendum: On June 23, 2016, the U.K. held a referendum where 51.9% of voters chose to leave the E.U.
• Negotiation period: From 2016 to 2020, the U.K. and E.U. negotiated the withdrawal terms.
• Transition period: After officially leaving in 2020, the U.K. entered a transition period until December 31, 2020, during which it remained in the E.U.'s single market and customs union.
• New relationship: As of January 1, 2021, the U.K. and E.U. began operating under a new trade agreement.
• Key impacts: Brexit has affected trade, immigration, and various economic sectors. It has also raised questions about the future of Northern Ireland and Scotland's relationship with the U.K.
• Ongoing issues: Some aspects of the new U.K.-E.U. relationship continues to be negotiated and adjusted, particularly regarding Northern Ireland.

 
Brexit has been one of the most significant political and economic events in recent European history, with wide-ranging consequences for the U.K. and the E.U.

A Bird's-Eye View of London, England

From 2018 to 2022, Ireland's annual GDP growth rates were notably high, ranging from 5.4% in 2019 to 13.6% in 2021 and 12.0% in 2022. Even during the global downturn caused by the COVID-19 pandemic in 2020, Ireland's economy grew by 6.2%, buoyed by its strong export market, particularly in pharmaceuticals and technology.

By contrast, the U.K.'s GDP growth has been more moderate, with fluctuations due to Brexit and the COVID-19 pandemic. In 2019, the U.K.'s economy grew by only 1.3%; in 2020, it shrank significantly by 9.8%. Although there was a recovery in 2021 with growth of 7.4%, it remained far below Ireland's expansion. The U.K.'s growth rate in 2022 was around 4%, still trailing Ireland's.

This divergence can be attributed to Ireland's more export-driven economy, benefiting from foreign direct investments, especially from U.S. tech companies, and its relatively low corporate tax rate, compared to the U.K.'s domestic market-oriented economy, which faced Brexit-related disruptions and slower recovery from the pandemic.
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The manifold problem facing the U.K. is economic stagnation compared to its neighbor Ireland. Ireland has long been despised by the U.K., which has traditionally regarded Irish Catholics as a lesser form of being going back to the U.K.'s role as its imperial master. Ireland's relative affluence will pressure Scotland and Wales to extricate themselves from the U.K. and chart their own destinies. Additionally, as the Catholic portion of Northern Ireland has now become a majority, pressures for unification with Ireland will continue to grow.