After shrinking for a second quarter in succession the Irish Republics economy has fallen into a recession. As recession is measured by two negative quarters of growth and this is what has happened in Ireland according to the Central Statistics Office.
The economy had shrunk by 0.3% in the first quarter and shrunk by a further 0.5% in the three months to the end of June. This is the first time that Ireland has fallen into a recession since 1983. The economy is now facing its toughest challenges since the 1980’s when it was hit with high unemployment and emigration.
Economists have pointed the blame towards the collapse of a decade-long bonanza in the property market and to add to this a slump in the activity in the construction industry.
The global credit crunch has also been a major factor in the slow down in the Irish economy. This means that Ireland is the first country in the eurozone to fall into a recession.
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