The Economic Growth in Peru compared to the Irish Economic Model

• In Event: Auditing 4

Abstract

Peru has experienced the highest economic growth in Latin America as measured by the Gross Domestic Product (GDP) during the last decade. The Peruvian economy struggled in the 1980’s and the 1990’s because of inflationary pressures and a lack of a consistent economic strategy. “Over the period 2002 - 2012, the Peruvian economy almost doubled in size” (Vera, M. and Wong, Y., 2/22/2013). The Irish economy experienced significant growth from 1990 to 2007. The “Celtic Tiger” became the model for the expanded European Union with their economic growth fueled by globalization. The “Taming of the Celtic Tiger” was the result of the global economic crises that resulted in a flat growth rate of the Gross Domestic Product (GDP) from 2007-2013 in the Republic of Ireland.
This paper will analyze the changes of the GDP of the Peruvian economy compared to the economy of Ireland. The banking industry including micro-lending (microfinance), regional economic development small and medium size entity (SME) financing, and infrastructure (large loans and financing capabilities) financing will be compared in these two countries. Peru is considered a developing economy with a limited global presence whereas Ireland has based its economic development on globalization.

Author

• Michael Joseph Gallagher, DeSales University