NationStates Jolt Archive

The Irish Republic's economy has fallen into recession after shrinking for a second quarter in succession.

The Central Statistics Office (CSO) said gross domestic product (GDP) had contracted by 0.5% in the three months to the end of June.

The economy had shrunk by 0.3% in the first quarter of the year. Technically, a recession is defined as two or more successive quarters of negative growth.

It is the first time Ireland has experienced a recession since 1983.

The economy is now facing its most difficult period since high unemployment and emigration hit in the early 1980s.

We have acceptance now that the economy is in recession in 2008. The issue is whether it will improve in 2009

Dermot O'Leary, Goodbody Stockbrokers


Irish economy - the business view

Economists pointed to the collapse of a decade-long bonanza in Ireland's property market, coupled with a slump in construction activity.

The global credit crunch has also been a factor behind the rapid economic slowdown.

It means Ireland is the first eurozone economy to slip into recession this year.

House building issues

Earlier this month, the Economic and Social Research Institute predicted the Irish economy would contract by 0.4% over the year after growing by 6% last year.

Dermot O'Leary, chief economist at Goodbody Stockbrokers, said: "We have acceptance now that the economy is in recession in 2008. The issue is whether it will improve in 2009.

"One thing we know for sure is that investment spending is going to continue to act as a drag on the economy in 2009, particularly on the house building side.

"We know also that the labour market is deteriorating - so that is going to affect consumption spending. So it does not look like it is going to be a V-shaped recovery."

Construction slacking

The Irish data showed consumer spending in volume terms was 1.4% lower compared with the same period of the previous year.

Capital investment was also 18.8% lower in the quarter compared with 2007, with significant declines in house building as well as in the acquisition of transport equipment and machinery.

Industrial output was ahead by 1% on the same quarter in 2007. However, the output of the construction sector fell by 12.2% over the same period.

A government spokesman said: "As expected, lower levels of new house building had a major restraining influence on growth in the second quarter, as is evident from the very weak investment figures.

"Other factors at work include higher commodity prices, global financial market problems, weak demand in our major trading partners and adverse exchange rate movements."

The country has enjoyed a boom since the late 1990s, with multinationals arriving to take advantage of one of the lowest corporate tax rates in Europe.

Bloxham Stockbrokers chief economist Alan McQuaid said:"Although the domestic side of the economy is contracting at a significant rate, the external side - the multinationals - is holding up quite well, but one would have to question how long that's going to last."



http://news.bbc.co.uk/1/hi/business/7635426.stm

So the Republic of Ireland is the first eurozone nation to hit a recession. Will more follow? And if so which nation will hit a recession next?

Spain, Germany, UK, in that order.

I blame Gordon Brown. We're the laughing stock of the world. I want to move to Australia.

Oh wait, this isn't the Daily Mail comment section.

Carry on.

I blame Gordon Brown. We're the laughing stock of the world. I want to move to Australia.

Oh wait, this isn't the Daily Mail comment section.

Carry on.

How does Gordon Brown affect Ireland's economy?

What Fine Gael have to say about this.

Leinster House, Dublin 2 Ireland

Contact : Mike Miley 086 3811203

Mr Richard Bruton TD Deputy Leader & Finance

Wednesday 24 September 2008

Remarks by Fine Gael Finance Spokesman, Richard Bruton TD, on the FG Private Member's Motion on The Irish Economy

"There will soon be 100,000 extra people on the dole facing acute uncertainty about their futures. Solid businesses will be forced to close down. This is a time when the country craves clear leadership. It is getting none from the present Government.

"Who can have confidence that the Government, which authored the destruction of the fundamentals of the Celtic Tiger economy, have suddenly been transformed and are now the ones to lead us out of this difficult situation?

- It is they who have exposed Ireland to excessive risk by sabotaging the public finances;
- It is they who have denied what everyone around them could see, that their flirtation with the property bubble was dangerous and damaging to the economy;
- It is they who have arrogantly dismissed every warning and ostracised those who questioned the wisdom of their ways.

"Since the storm clouds first began to gather towards the end of last year, the Government has done nothing to develop a strategy to help us weather the tough times. They introduced a 'hit and hope' budget, which recklessly gambled on a 'soft landing'.

"When collapsing tax revenues finally forced them to wake up to the reality which everyone else could see, they offered a feeble response and packed off on their holidays.

"Their behaviour was in stark contrast to the action of other Governments who had been prepared, and who, at the first sign of trouble, acted to stem the problems. The Spanish Prime Minister ordered his Ministers back from their holidays. Its cabinet immediately set to work on a package of measures which, with their superior management of the public finances, allowed them to deliver increases in infrastructural investment and a tax stimulus.

"The Government say they want Opposition support in this difficult time. However, they have denied a debate in the Dáil, where the ideas of Members could be discussed and options considered. They refused to publish any pre-Budget papers on spending, taxation or the options available to address our problems. Their call for Opposition to play a part is not genuine. It is merely a ploy in a media strategy to try to shift the blame.

"Time and again Fine Gael has set out alternative approaches:

- That would deliver value for money;
- That would keep spending in line with long term sustainable sources of tax revenue, that would reform the way public services are delivered;
- That would open up competition in sheltered sectors. However our ideas have been spurned.

"The first step of courageous leadership which we now need is to recognise the serious mistakes that have been made by Government that have massively contributed to the problems we now face:

- Expansionary budgets to fund soft-option politics;
- The lazy habit of outsourcing to big bureaucracies to management of unreformed policies and systems;
- Allowing the property bubble to destroy export competitiveness;
- The abdication of accountability for waste, inefficiency, and failure.

"It is only when a Government takes ownership of its mistakes that we can hope that the lessons will be learned.

"The sort of leadership that this country now needs requires action on several fronts:

- Lead by example by making savings that show Ministers too will make sacrifices.
- Don't add new mistakes by seeking to prop up a property boom, or raising taxes which squeeze families and consumers.
- Transform the system of budgeting: to get value for money; restoring discipline, tackling waste, introducing accountability with consequences.
- Restructure for a smarter economy making the changes in policy now that are needed to allow us exploit the opportunities in the knowledge economy, the energy and environmental sectors and many others that offer bright prospects for the future."

And it begins... Domino effect in action.

My hairline is in recession! Quick, what do I do????

My hairline is in recession! Quick, what do I do????

I hear there are creams for that or surgery...

I hear there are creams for that or surgery...

Oh thank God. Crisis avoided. Go back to living your lives.

How does Gordon Brown affect Ireland's economy?

One might say that was the point of the joke.

What Fine Gael have to say about this.

Who ever cared what Fine Gael had to say about anything?

Feh.

We've been told this for the past 6-8 months so it's no shock or surprise. (Unlike seemingly in the States....)
People are prepared for it (as much as you can be).

What Fine Gael have to say about this.


....is fucking irrelevant, because its mostly caused by the big fish of the world, not what us plankton are doing. Secondly, had any move been made to regulate the housing market here, they'd have gone mental.

My hairline is in recession! Quick, what do I do????
Well with the amount of money flowing out of the American taxpayer's pocket, I'm sure you could requisition a million or so dollars to support American values and such (i.e. not being a slaphead).

http://i7.photobucket.com/albums/y284/fullmulletalchemist/nelson_ha_ha.jpg

Sorry, it seemed necessary. Especially at those pesky Irish.

Sorry, it seemed necessary. Especially at those pesky Irish.

Sure don't worry about it. We'll just get the ferry and rob your jobs like we used to do.

Sure don't worry about it. We'll just get the ferry and rob your jobs like we used to do.

Well, you'll have to throw out the Polish first.