The world's largest bond fund, Pimco, has remarked upon the damage done to the Irish economy from being a member of the euro and not having the option to devalue the currency.

Pimco, led by Bill Gross, one of the world's most respected bond managers, compared the way Ireland and the UK had weathered the past year.

"Contrast how the Irish and British economies are adjusting to the financial crisis. The UK's floating exchange rate has helped cushion its economy relative to Ireland, which is experiencing a sharp contraction in GDP under its fixed exchange rate to the euro," said Andrew Bosomworth, head of portfolio management with Pimco Europe.

Pimco said many people would argue against a devaluation anyway. "Proponents of maintaining the fixed exchange rate say devaluation won't help exports because most of them are assembled from imported components".

Pimco is a major holder of Irish government bonds and also holds debt in some of the Irish banks.