Ireland finally emerges from recession

| June 30, 2010 | 0 Comments

Ireland has finally exited a prolonged recession after figures revealed the economy grew by 2.7% in the January to March period.

It was believed that Ireland had exited recession in the third quarter of last year but an initial estimate of growth was later revised to show a contraction within the economy.

As a result, Ireland is one of the last euro zone nations to emerge from recession. Greece, which is in the midst of a debt crisis, is still in recession.

Ireland’s economy was one of the worst performers in the western world last year and prior to the current downturn, the Irish economy had not experienced a recession since 1983.

The economy slipped into recession during the first half of 2008 - becoming the first nation of the euro zone to do so.

Ireland experienced a property boom since the late 1990s, with multinationals arriving to take advantage of one of the lowest corporate tax rates in the euro zone.

However, the ailing housing market has had a major impact on the former “Celtic Tiger” economy and property prices have plummeted since their high in 2006.

In the meantime, figures today from Ireland’s Central Statistics Office (CSO) revealed Ireland’s unemployment rate rose from 13.2% in May to 13.4% in June.

The figures also showed those claiming unemployment benefit increased by 5,800 in June.

On a final note, there are clearly worrying signs for Ireland after Melanie Bowler, of Moody’s Economy in London, said: “We’re forecasting that the euro zone will slip back into recession later this year, early next year, which will clearly have implications for the Irish economy.”

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