ESRI predicts end of recession in 2010
(23/12/2009)
 
The ESRI believes the Irish economy will contract by 0.25% next year but Ireland should exit recession in the middle of the summer.

This year the ESRI says the economy shrank by 7.25%.

In its final quarterly economic commentary of the year, the ESRI says it is hard to overstate what a difficult year 2009 has been for the economy, with a drop in GNP of 10% and more tellingly 170,000 less people at work.

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However, it says there will be low levels of growth for the remainder of the year.

That growth will not be enough to stave off further unemployment with another 76,000 jobs predicted to be lost - but that is less than half the rate of job loss seen this year.

Assessing the recent Budget, the ESRI says it will be positive for the economy and that the burden of the combined changes of the past three budgets has fallen most heavily on high earners.

It says contrary to popular perceptions this was not the most contractionary Budget of modern times, as the Budgets of 1976, 1988 and 1989 all took more money out of the economy.

Source:  www.rte.ie
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