The Irish Economy

Figures from the Central Statistics Office show that the Irish economy contracted by 7.6 per cent in 2009 as measured in Real GDP terms, against contraction of 3.5 per cent in 2008. GNP, which many commentators consider to be a more relevant indicator for the Irish economy showed a real growth of -10.7 per cent in 2009, against -3.5 per cent during 2008. Real GDP growth in 2010 is forecasted at 1.0 per cent. Real GNP growth is forecast at -0.7 per cent for 2010. At the end of the first quarter 2010, Real GDP growth was -0.7 per cent and Real GNP growth was -4.2 per cent when compared with the corresponding quarter of 2009. On a seasonally adjusted basis estimates for the first quarter of 2010 show an increase of 2.7 per cent in GDP and a decline of 0.5 per cent in GNP compared with the previous quarter.

Annual average inflation for 2009 was -4.5 per cent compared to 4.1 percent in 2008.Inflation is forecast to average -1.0 per cent in 2010. At end June 2010, annual inflation was -0.9 per cent and the annual HICP rate was -2.0 per cent. For the first quarter of 2010 employment growth stood at -5.5 per cent or an annual decrease of 108,000 people working. It is estimated that in 2010, 13.5 per cent of labour force will be unemployed. The Department of Finance estimates that unemployment will reduce to a rate of 12.6 per cent in 2011 and 11.8 per cent in 2012. The seasonally adjusted unemployment rate was 12.9 per cent at the end of the first quarter of 2010.

Source: Central Statistics Office; Department of Finance.