Irish Economy: Ulster Bank Quarterly Economic Outlook - GNP growth to contract by 0.3% in 2008; Slowdown to be more prolonged than previously expected - economy should expand in 2009 by 0.5%
Jul 9th, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Irish Economy: Ulster Bank says today in its Quarterly Economic Commentary that Irish GNP is set to contract in 2008. This will be the first outright reduction in activity in a quarter of a century – though the perceived wisdom is that the nadir was 1986, history was rewritten by subsequent data revisions and the last recorded negative growth rate was in 1983. GNP, the bank's preferred measure of growth, (it excludes profits of multinationals which accrue to non-residents, and includes profits earned abroad by residents), then contracted by 1.9%. This year, it is forecast to decline by 0.3%. This compares with forecast growth of 0.5% in the April Quarterly.