Irish GDP plummets
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Ireland’s GDP fell to -1.2 per cent in Q2 2010 having only just officially come out of its recession.
According to the Central Statistics Office, Irish GDP fell from plus 2.2 per cent in the first quarter of the year. On an annualised basis, GDP fell by 1.8 per cent in Q2.
Ireland came out of its recession in the first quarter of this year after eight quarters of contraction. If Ireland were to post a contraction in Q3, it would officially have slipped back into recession.
World First chief economist Jeremy Cook says: “When I saw the figure I honestly thought it was a misprint; it’s just horrible.”
The news of the economic contraction has led to a record rise in Ireland sovereign debt yields to 4.67 per cent. Credit Default Swap rates on Irish debt have also risen to 5 per cent.
Cook says: “To put that in context, the market believes that Ireland is twice as likely to default on its debt than Vietnam.”
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Readers' comments (1)
Peter L. Griffiths | 27 Nov 2010 5:40 pm
The present (November 2010) Irish bank crisis is a direct result of Irish banks being permitted to enter into credit default swap agreements by Irish law and EEC regulations.
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