Fitch ratings agency yesterday released a report which shows that a divergence has started to develop in the eurozone periphery as the economic recovery in the eurozone takes hold.
The report compares the recent macroeconomic performance of the four largest peripheral countries - Italy, Spain, Portugal and Ireland - with a focus on the divergence and its potential drivers.
It finds that Ireland is the most successful among the four peripheral countries and by most metrics an outlier. According to the report, the recovery and ultimately the growth potential was helped by the high level of openness of the Irish economy.
The report indicates that confidence in the financial sector was boosted by early bank recapitalisation, though the forbearance of NPLs prevailed for a longer period and fiscal consolidation has continued during the recovery.