Business And Leadership: Irish economy contracts 8.5pc on annual basis

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Irish economy contracts 8.5pc on annual basis

30.06.2009
The Irish economy suffered a dramatic shrinkage during the first three months of this year, according to new figures released today by the Central Statistics Office (CSO).

Ireland’s economic activity, measured by gross domestic product (GDP), fell a dramatic 8.5pc compared with the same quarter in 2008. On a quarterly basis, GDP suffered a fall of 1.5pc in Q1 of 2009.

Gross national product (GNP), the country’s output of goods and services, shrank by a massive 12pc in the first quarter of the year, compared to the same quarter in 2008.

Speaking on RTE News, a CSO official described today's figures as "unprecedented", noting that the last time the country suffered from similarly steep falls in economic activity was in the 1950s.

According to the CSO figures, consumer spending in volume terms was 9.1pc lower in Q1 of 2009 compared with the same period in 2008.

The volume of output of industry decreased by 10.5pc in Q1 2009 compared with Q1 2008, the CSO figures showed. Within this, the output of the construction sector suffered the greatest fall of 31.4pc, while the output of the distribution, transport and communications sector was down 10.9pc.

Capital investment declined by 34.1pc in Q1 2009, compared with Q1 of 2008.

Net exports, which is the value of exports minus imports, in constant prices were €2,814m higher in Q1 2009 compared with Q1 2008, the CSO figures showed.