Warning issued over Irish economic slowdown

News Article - 25 June 2008
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Businesses in Ireland are being warned that the country is facing its first recession in 25 years.

The country's finance minister suggested this week that the Irish economy is currently facing a "serious problem" and is feeling the effects of the global credit crunch.

A report by the Economic Social Research Institute predicted that Ireland could witness its first drop in output since 1983 and reduced predictions for growth in construction, consumer spending and exports.

The study stated that gross domestic product will dip by 0.4 per cent during 2008, revised down from a growth prediction of 1.8 per cent in March, the Dublin-based thinktank stated.

Finance minister Brian Lenihan told RTE Radio that the study is a "wake up call" for Ireland and cited declining housebuilding, the credit squeeze, soaring oil prices and rising fuel costs as factors contributing to the economic downturn.

Consumer confidence in Ireland has plummeted and unemployment has soared to a nine-year high.

Irish firms concerned about the economic slowdown can use accounts software in order to manage their finances more effectively.

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