Fears of a major new recession in Ireland have revived following the news that the economy shrunk by almost 2 percent in the third quarter.
Opposition Fianna Fáil finance spokesman Michael McGrath said the economic situation was very negative.
“We’re facing a potent combination of weak consumer demand, an export sector which has been doing well but is now facing growing challenges, and lower Government spending,” he said.
Sinn Féin finance spokesman Pearse Doherty said the figures were no surprise.
“We warned the Government against concentrating solely on an export-led recovery when so many other economies were starting to struggle,” said Doherty.
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The CSO says that on an annual basis, GDP fell by 0.1% and GNP was down 4.2%. Consumer spending and government spending both fell by 1.3% during the third quarter, while investment slumped by 20.9%. Exports increased by 0.8%.
Compared to the previous 12 months, consumer spending and government spending both fell by 3.9% while investment slumped by 22.2%.
For the first nine months of 2011, there was a balance of payments deficit of $895 million, compared with a deficit of $1 billion in the same period last year.
Meanwhile, credit ratings agency Fitch stated that Ireland and six other European governments were on “negative credit watch.”
“Following the EU summit on 9-10 December, Fitch has concluded that a ‘comprehensive solution’ to the euro zone crisis is technically and politically beyond reach,” it said
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Switch to the desktop site to post a comment.joycean | Dec 18, 2011, 11:07 AM EST
Jagersagain, The American recession officially ended in 2009. Un employment is the last thing to turn around in a recession.The economy is slowly improving, and recessions can help by forcing interest rates down. I am hoping the Fed will continue with "quantitative easing."
esatdigiwank | Dec 18, 2011, 06:31 AM EST
But nevertheless, FG-Lab will attempt to do what has never been achieved. That is, to tax the country out of the 1st recession.. Don't stick around. Can we soon start to regard Ireland as a 'failed state'? I daresay it already is.
jacersagain | Dec 17, 2011, 06:41 PM EST
We Irish are not out of the post-Celtic Bear recession yet, neither is the USA out of the Fannie Mae/Freddie Mac/Lehman Bros fiasco that started the whole world tumbling. It’s idiotically useless to mention a “forthcoming, newer and deeper” economic recession in Ireland or the USA when it’s already existent. Let’s get real... the money ain’t there, so will those who think it’s there get real and stop looking for it off those who are struggling to put food on the table for their families and themselves? You cannot look for, and take, what’s not there, simple truth. Unless you look to those who do hold the money that they’ve already taken from those who seek to house and feed their families. Payback time, dont’cha think? When it comes, methinks it’s gonna be big... a very big-time payback.
peterson | Dec 17, 2011, 01:34 PM EST
Stay away from the new German "empire" ! ! (the E.U.)
Murph46 | Dec 17, 2011, 12:33 PM EST
And the American Corps.didn't pay money into the Irish economy?
LoyalCitizen | Dec 17, 2011, 09:16 AM EST
A second recession before the first recovered is a depression.........With Fine Gail / Labour just as retarded the last shower things can only get worse.......Irish Politicians have never had any skills even before they took all the wads of cash from Europe.........Europe was mad to let the retards loose with huge amount of free money to finance pretentious American Corporations and asset strip Ireland.