“The higher they fly, the harder they fall,” goes an old saying. Ireland and Iceland, among other countries, certainly experienced that firsthand in recent years. Their supercharged economies boomed in the run-up to the Great Recession, but they fell hard when markets crashed. Though times are still tough in many places, there is a ray of hope. Real GDP growth forecasted by the International Monetary Fund shows many economies that suffered most from the recession may bouncing back at a faster clip than countries’ which merely stumbled.
The United States, Canada, and most of Western Europe certainly felt the sting of the downturn, but not as much as Ireland and Iceland. Problems with two island nations’ banking systems laid their economies low, but the recent GDP forecast shows both will be growing at 3 percent or more by 2015. Many developing nations will soon recover from the slump as well. Brazil’s economy is on track to grow at more than 4 percent for the next four years, while much of Africa will experience a red-hot recovery. Maybe the old saying needs to be amended to add, “the faster they get back up.”