Irish Economy: IMF says Irish banks face losses of €35 billion by end 2010 - - 20% of GDP; “Modestly-paced recovery” after 2010; “Decline in wages will need to be sustained”
Jun 25th, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Irish Economy: The International Monetary Fund (IMF) in its annual report on Ireland that was issued in Washington on Tuesday, said through the end of 2010, Irish banks could face losses of about €35 billion, or about 20 percent of GDP. The economy will shrink by 13.5 percent from 2008 to 2010 - - the largest among advanced economies - - and unemployment will rise to 15.5 percent next year. The Fund says thereafter, as "the present dislocations gradually correct themselves, only a modestly-paced recovery is foreseen. The incipient decline in wages will need to be sustained to help redress Ireland’s cost disadvantage."