Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

ENCORE!

Haute Couture: the hand-stitched clothing made in Paris that sells for the price of small yachts

Read more

  • Ukraine promises retaliation after rebel assault

    Read more

  • Kerry holds all-night talks with Afghan presidential rivals

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • The third-place playoff: the World Cup game no one wants to play

    Read more

  • Netanyahu resists international pressure to stop air strikes on Gaza

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Cleveland's NBA fans hail 'return of king' LeBron James

    Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

  • Magnitude 6.8 quake, small tsunami hit east Japan

    Read more

  • Suspect in Brussels Jewish Museum shooting drops extradition appeal

    Read more

  • Kurdish forces take over two oilfields in northern Iraq

    Read more

  • Are French high school students getting smarter?

    Read more

  • Italy’s Trentin wins seventh stage of Tour de France

    Read more

  • In pictures: Chanel, Dior and so much more at the Paris couture shows

    Read more

Ireland enters recession

©

Latest update : 2008-09-25

Ireland has entered a recession, its economy having shrunk in the first two quarters of 2008, 0.3% in the first quarter and 0.05% in the second.

Ireland's economy, hit by a housing market collapse and the global credit crunch, has entered a recession after shrinking in the second quarter of 2008, official data showed Thursday.

European neighbours Britain, France, Germany, Italy and Spain sit on the brink of recession amid persistent global economic turmoil.

Denmark fell into recession -- two successive quarters of negative economic growth -- earlier this year.

Irish gross domestic product (GDP) shrank by 0.5 percent in the second quarter of 2008, compared with the previous three-month period, the Central Statistics Office (CSO) said in a statement.

That followed contraction of 0.3 percent in the first quarter.

Ireland has in recent years been described by analysts as the "Celtic Tiger" economy because of its prolonged period of double-digit growth in the 1990s, which placed it among the richest nations in Europe.

However the eurozone member has been hammered by the international credit crisis, a severe property market and construction industry downturn, weak consumer spending, sky-high oil prices and the strong euro, according to economists.

Howard Archer, an analyst with the Global Insight consultancy in London, said it was not a shock that Ireland had lost its roar.

"It was no surprise that Ireland contracted again in the second quarter as a wide range of indicators had been extremely weak -- be it relating to the service sector, manufacturing, consumer confidence and retail sales," Archer told AFP.

"Clearly, the housing market and construction downturns are having a major depressing impact on Irish economic activity on top of wider European problems including the strong euro, elevated oil, commodity and food prices, the financial sector turmoil and slowing global growth."

He added: "I think the downturn has been more severe in Ireland than in other European countries, but I think an increasing number will join Ireland in recession, including the UK, Spain and Italy.

"Technical recession is also very possible in both Germany and France," said Archer.

The CSO added Thursday that Ireland's economy also contracted on a 12-month basis in both the first and second quarters of 2008.

"In the second quarter of 2008 GDP decreased by 0.8 percent at constant prices compared with the same period in 2007," the CSO said in its statement.

"This is the second successive quarter in which GDP showed a decrease compared with the same quarter of the previous year."

The economic growth rate had plummeted to minus 1.3 percent in the first quarter of 2008 on a 12-month basis, the CSO added. That marked a slight revision from the previous estimate of minus 1.5 percent.

Date created : 2008-09-25

Comments

COMMENT(S)