I was in Dublin in 2009 and spoke with several high-ranking managers at Anglo-Irish Bank, which was severely exposed to the property bubble through what were referred to as 'hidden loans', prompting a scandal that forced the resignation of its chief executive.
Like many countries, the explosive growth of the 'Celtic Tiger', as Ireland was known, precipitated an enormous property boom and eventual collapse. The ensuing housing bubble contributed heavily to rising private mortgage debt.
Here's the difference: the basic fundamentals of New Zealand's economy do not match those of the Irish and southern European economies. Our banking sector is dominated by large Australian-owned banks, which were largely insulated from the GFC by their limited exposure to mortgage-backed securities.
Additionally, New Zealand's economy has experienced continued growth due to the Christchurch rebuild effort and the drought recovery, and primary industries have in fact been the largest contributor to growth over the last couple of years.
While it's true that New Zealand's fortunes appear to be tied to growth in the Chinese economy, the same can be said of most countries in this region. Contrary to what might be expected, New Zealand's growth has continued in spite of the rising Kiwi dollar, which would tend to make our goods less competitive on foreign markets.
I am inclined to agree with the majority of economists that the outlook for this country looks considerably brighter than a few detractors would have us believe.
Donald Blair is the Managing Partner of Paradigm Strategy Partners, a New Zealand-based corporate advisory firm. An American-born economist, he has over 28 years of experience in global markets across the public sector and in a diverse portfolio of private-sector firms.