This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/business/2013/jun/27/ireland-back-recession-austerity-data-revision
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Ireland falls back into recession despite multibillion-euro austerity drive | |
(34 minutes later) | |
Ireland is back in recession despite an austerity drive to cut its debts, official figures have confirmed. | Ireland is back in recession despite an austerity drive to cut its debts, official figures have confirmed. |
Irish GDP shrank 0.6% in the first quarter of 2013, but the recession was confirmed when official data revised the economy's performance in the final three months of 2012 to a decline of 0.2%. It means that Ireland has endured three successive quarters of contraction and is back in recession for the first time since 2009. GDP has declined despite the presence in Ireland of multinationals such as Apple, Google, IBM and several big pharmaceutical companies. | Irish GDP shrank 0.6% in the first quarter of 2013, but the recession was confirmed when official data revised the economy's performance in the final three months of 2012 to a decline of 0.2%. It means that Ireland has endured three successive quarters of contraction and is back in recession for the first time since 2009. GDP has declined despite the presence in Ireland of multinationals such as Apple, Google, IBM and several big pharmaceutical companies. |
The output drop reflects an ongoing depression in consumer demand, amid unemployment of nearly 14%. Personal expenditure declined by 3% between the fourth quarter of 2012 and the first quarter of 2013. The decrease in demand reflects Irish consumers' fears for their jobs and a reluctance to get into debt following the credit-fuelled spending boom of the Celtic Tiger years. | The output drop reflects an ongoing depression in consumer demand, amid unemployment of nearly 14%. Personal expenditure declined by 3% between the fourth quarter of 2012 and the first quarter of 2013. The decrease in demand reflects Irish consumers' fears for their jobs and a reluctance to get into debt following the credit-fuelled spending boom of the Celtic Tiger years. |
Capital Investment also declined by 7.4% while net exports decreased by just over €1bn (£595m) over the same period. The slip back into recession will be deeply disappointing for the Fine Gael-Labour coalition, which has slashed public spending in a bid to drive down the country's debt while placating the troika of the International Monetary Fund, European Union and European Central Bank who bailed out the country in 2010. | |
On a brighter note, the construction industry in the Republic is showing some signs of recovery. The latest figures point to a 2.1% increase in building across the state in a sector which was devastated by the property crash of 2008-09, and which has been a huge factor in lengthening the country's dole queues. |