Although the Irish government is busily reassuring investors about their economy, the indicators lately have said otherwise. Can the exchange traded fund (ETF) tell the real story?

The Irish republic’s economy shrank over the second quarter, while GDP fell 1.2%. According to BBC News, GNP, seen as a more accurate barometer, fell by 0.3%. [Will Luck O’ the Irish Spread to ETFs?]

Matt Phillips for The Wall Street Journal reports that the difference in yields between 10-year bonds issued by the German and Irish governments rose to a fresh record high of 4.32% from 4.27%. That spread is a measure of the perceived riskiness of investing in Irish government bonds. [Ireland ETF Faces Challenges.]

The spreads are also fueling concerns that Ireland is in for a double-dip recession. Can Ireland beat the odds?

  • iShares MSCI Ireland (NYSEArca: EIRL) is below its long-term trend line, so for now, the economy could continue to experience some pain

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.