Ireland’s economy and exchange traded fund (ETF) are shrinking under growing pressure of a prolonged recession, but rest assured there is a plan in the works.
A deepening Irish economic downturn because of the global credit crisis and low business confidence experienced a small respite in the third quarter as the gross domestic product (GDP) rose 1.2%, reports Jonathan Saul for London South East. The Irish GDP rose 0.1% for the year compared to analyst forecasts of a 2% contraction.
The gross national product (GNP) fell 0.9% in the same quarter against a 3.5% drop in the previous three months. It is predicted that growth will worsen further in late 2008 and early 2009. Early indicators are showing greater contraction in the fourth quarter and 2009 because of recent changes in the euro exchange rates.
Government forecasts a 3% to 4% contraction in the economy next year, which makes it a record worst recession experienced by Ireland.