31 March 2009

Economy in Ireland in Decline

In the last three months of 2008, the Irish economy shrank by 7.5 per cent according to official statistics.

Being widely blamed for the sharp downturn include the housing market collapse - Irish house building accounted for around 15 per cent of Irish GDP during the recent housing boom. Now, with the benefit of hindsight, analysts are saying that the level at which houses were being built - at one point the figure was quoted as being 90,000 in a year - was unsustainable. While initially it was the residential sector that was hardest hit, now the commercial property market is also being affected.

Once known as the Celtic Tiger, the Irish Republic is now suffering, some might say more than many Euro currency countries.

But optimism is still ever-present, and many are predicting a good recovery thanks in part to the Irish people who are being conscientious with their personal finances, saving what they can and buckling down in order to fight the recession.

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