The Irish Economy

Estimates from the Department of Finance show that the Irish economy is expected to contract by an estimated 7.5 per cent in 2009 as measured in Real GDP terms, against contraction of 2.3 per cent in 2008. GNP, which many commentators consider to be a more relevant indicator for the Irish economy is expected to show real growth of -10.4 per cent in 2009, against -3.1 per cent during 2008. Real GDP growth in 2010 is forecasted at -1.3 per cent. Real GNP growth is forecast at -1.7 per cent for 2010. At the end of the third quarter 2009, Real GDP growth was -7.4 per cent and Real GNP growth was -11.3 per cent.

Annual average inflation for 2009 was -4.5 per cent compared to 4.1 percent in 2008.Inflation is forecast to average -0.8 per cent in 2010. At end December 2009, annual inflation was -5.0 per cent and the annual HICP rate was -2.6 per cent. At the end of the third quarter of 2009 employment growth stood at -8.8 per cent or an annual decrease of 184,700 people working. It is estimated that in 2010, 13.2 per cent of labour force will be unemployed. The Department of Finance estimates that unemployment will increase to a rate of 12.6 per cent in 2011 and 11.8 per cent in 2012. Unemployment stood at 12.7 per cent at the end of the third quarter 2009.

Source: Central Statistics Office; Department of Finance.