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    Irish Economy Suffers Dramatic Downturn

    Ireland's economy shrank 1.9% in the third quarter - almost four times more than was expected.

    Figures from the Irish Central Statistics Office (CSO) show gross domestic product (GDP) contracted in the three months to the end of September, after growing in the first two quarters of 2011.

    Ireland had been the second-best performing economy in the eurozone in the period from April to June, but now falls to second-worst - only above Greece.

    Earlier in December, Ireland cut its GDP growth forecast for 2012 to 1.3% from 1.6%.

    The Irish finance and public expenditure ministers unveiled their latest austerity budget on December 6 and 7.

    It included a 2% hike in VAT and a property tax of 100 euro (£84) per household.

    Gross national product (GNP), seen by some as a better measure of the economy because of the large number of multinational companies operating in Ireland, shrank by 2.2% between July and September, compared with 0.7% growth in the second quarter.

    The data leaves Ireland on course to register only marginal growth this year.

    Looking at the changes over the year, the CSO said there had been a 15% increase in farming, forestry and fishing - but consumer spending, construction and government spending were all continuing to fall in the third quarter.

    A more than 20% decline in construction effectively wiped out gains made in other sectors.

    The CSO also said there had been a 20% fall in investment compared with the previous quarter, figures which can be heavily influenced by the purchase of valuable aircraft.

    The country received a £72bn bailout from the European Union, European Central Bank and the International Monetary Fund in November 2010.

    It has often been held up by European leaders as a model for recovery following a series of austerity budgets.

    Now, Ireland's Department of Finance was warning about the significant impact the eurozone crisis is having.

     

    53 comments

    • Colin  •  5 months ago
      You Brits are showing by your comments that the lack of feelings you showed us Irish when you starved us during the great famine and forced us from our lands like you did in so many countries around the world...I would be very worried if I were you right now because trade between Ireland and the UK is substantial..yes you need the Irish economy to be healthy as much as we do.
      • Adolf 5 months ago
        A history lesson is all we need from people who are nothing more than parrots, the British gave the thick Irish their freedom to f***ck their own lives up and they all did a great job of it as predicted, AND THEY WILL CONTINUE TO DO SO BECAUSE THAT'S HOW THEY ARE. CONGRATULATIONS IRELAND. SO STOP BLAMING EVERYONE ELSE FOR YOUR OWN COUNTRIES STUPIDITY AND DO SOMETHING POSITIVE INSTEAD.
      • Ola 5 months ago
        I hate the way people go back way in history about something that happened in the past .."oh how you starved us"oh please, allow it.Apologies have done so what more do you want?The queen has visited and apologies have been made so move on or you'll lack behind.
      • Noel Reilly 5 months ago
        95% of irish people have no issues with england,there is a minority that dont,as there is a minority in england that do not like us and have a superioty complex over many nations,still its the 5% that likes to have their opinions aired here,because its not costing them anything,i guess,think i will stay with the majority and stop wasting valuable minutes of my life on this meaningless drivel,god the banks must be laughing at the peasants here squabbling among themselves while they order another 5000 euro bottle of champagne and live it up!
    • Rich  •  5 months ago
      Islam is not a religion nor is it a cult. It is a complete system. Islam has religious, legal, political, economic and military components. The religious component is a beard for all the other components. Islamization occurs when there are sufficient Muslims in a country to agitate for their so-called "religious rights." When politically correct and culturally diverse societies agree to "the reasonable" Muslim demands for their "religious rights," they also get the other components under the table.

      As long as the Muslim population remains around 1% of any given country they will be regarded as a peace-loving minority and not as a threat to anyone. In fact, they may be featured in articles and films, stereotyped for their colorful uniqueness:
      United States -- Muslim 1.0%
      Australia -- Muslim 1.5%
      Canada -- Muslim 1.9%
      China -- Muslim 1%-2%
      Italy -- Muslim 1.5%
      Norway -- Muslim 1.8%

      At 2% and 3% they begin to proselytize from other ethnic minorities and disaffected groups with major recruiting from the jails and among street gangs:
      Denmark -- Muslim 2%

      Germany -- Muslim 3.7%
      United Kingdom -- Muslim 2.7%
      Spain -- Muslim 4%
      Thailand -- Muslim 4.6%

      From 5% on they exercise an inordinate influence in proportion to their percentage of the population. They will push for the introduction of halal (clean by Islamic standards) food, thereby securing food preparation jobs for Muslims. They will increase pressure on supermarket chains to feature it on their shelves -- along with threats for failure to comply. (United States).

      France -- Muslim 8%
      Philippines -- Muslim 5%
      Sweden -- Muslim 5%
      Switzerland -- Muslim 4.3%
      The Netherlands -- Muslim 5.5%
      Trinidad & Tobago -- Muslim 5.8%

      At this point, they will work to get the ruling government to allow them to rule themselves under Sharia, the Islamic Law. The ultimate goal of Islam is not to convert the world but to establish Sharia law over the entire world.

      When Muslims reach 10% of the population, they will increase lawlessness as a means of complaint about their conditions (Paris -- car-burnings). Any non-Muslim action that offends Islam will result in uprisings and threats (Amsterdam -- Mohammed cartoons).

      Guyana -- Muslim 10%
      India -- Muslim 13.4%
      Israel -- Muslim 16%
      Kenya -- Muslim 10%
      Russia -- Muslim 10-15%

      After reaching 20% expect hair-trigger rioting, jihad militia formations, sporadic killings and church and synagogue burning:

      Ethiopia -- Muslim 32.8%
      At 40% you will find widespread massacres, chronic terror attacks and ongoing militia warfare:
      Bosnia -- Muslim 40%
      Chad -- Muslim 53.1%
      Lebanon -- Muslim 59.7%

      From 60% you may expect unfettered persecution of non-believers and other religions, sporadic ethnic cleansing (genocide), use of Sharia Law as a weapon and Jizya, the tax placed on infidels:

      Albania -- Muslim 70%
      Malaysia -- Muslim 60.4%
      Qatar -- Muslim 77.5%
      Sudan -- Muslim 70%
      Bangladesh -- Muslim 83%
      Egypt -- Muslim 90%
      Gaza -- Muslim 98.7%
      Indonesia -- Muslim 86.1%
      Iran -- Muslim 98%
      Iraq -- Muslim 97%
      Jordan -- Muslim 92%
      Morocco -- Muslim 98.7%
      Pakistan -- Muslim 97%
      Palestine -- Muslim 99%
      Syria -- Muslim 90%
      Tajikistan -- Muslim 90%
      Turkey -- Muslim 99.8%
      United Arab Emirates -- Muslim 96%

      100% will usher in the peace of "Dar-es-Salaam" -- the Islamic House of Peace -- there's supposed to be peace because everybody is a Muslim:
      Afghanistan -- Muslim 100%
      Saudi Arabia -- Muslim 100%
      Somalia -- Muslim 100%
      Yemen -- Muslim 99.9%
    • andy  •  5 months ago
      when will the people of ireland realise that all the politicians in this country have only one thing in their tiny little minds,,,GET ELECTED AND GRAB A BIG PENSION,,,they dont care about the people. can someone please answer a few questions for me,,,(1) why do we need 166 td's to run such a small island. just look on tv at the dail chamber during debates at the number of empty seats. where are all those td's that we elected to represent us? surely they are not all in the dail bar,,,,(2) when will we ever see the seanad abolished as was promised,,,,(3) why dont we demand that td's salaries be cut to the average industrial wage and stop all the expences claims,,,(4) why not a super tax to claw back most of the obsene pensions from ex ministers and td's. COWEN and GORMLEY should be on trial along with all other other members of their parties for TREASON as they sold our country to the EU/IMF,,,((5) KENNY and GILMORE should be on trial for selling the irish people into slavery. we all know that fianna gael are just fianna fail in another suit but to see GILMORE (who claims that the LABOUR party are the party of the people) stand idly by and allow KENNY ride roughshod over the people just proves my point that he's only there for his pension and to hell with the people. i cant saee any td coming on here and answering but i'd sure love the chance to question them on all the above. shame on you all for not caring about either our people or our country. its time the people rose up against this tyranny before we all starve to death
    • Declan  •  5 months ago
      with all due respect to all previous posters on this comment section...please stop pointing out the obvious flaws in this mockery we call an irish government...and just post excatley what u believe needs to be done to organise a movement that marches on the streets of the capital and other cities and towns around the country to protest on getting this lot out and getting people into power who WILL cut all the rich,all the high earners (anyone earning over 100.000euro),no one anywhere in this country should earn over that amount...NO ONE. It really is high time we all stood up for ourselves and our country,and our ancestors who battled,who sacrificed and who endured to give future generations hope of a decent life...NOW ITS OUR TURN. So please everyone lets get things moving...there is people in your area who are on your side..locate them,join them,help this movement for complete change grow...its what we all have to do....ITS OUR TURN.
      • Lawrence 5 months ago
        You have a point to make here Declan. Unfortunately, Ireland is not a protesting
        country, people prefer talking about serious national issues in the Pubs, and thereafter, conclude with a few pints, instead of standing in the cold with placards to get rid of disgruntled elements in power that are bent on destroying the future of the many generations to come.
      • Nerys W 5 months ago
        Not just Ireland is riddled with high earners, Declan. UK too - which is why we've got protesters setting up camp outside St Paul's Cathedral.
    • V  •  5 months ago
      The Rothschild,s EU race to to the bottom I wonder who will get 3th world status first .
    • conan  •  5 months ago
      how dare they talk about jobs,and how many they are going to creat[ by robbing private pensions], when at the same time taking another 3.8 billion out of the economy, and inspite of all the talk..they are still spending 60 billion.The only way is to cut spending down to our income.And do it in one go.Get on with it u total screwheads. Stop listeningto those idiot civilservants/ unions.
    • Jim dandy  •  5 months ago
      Wow ,,,and the powers that be had to wait for these results to realise that they have taxed this country into another recession . Geniuses !!
    • Jonathan  •  5 months ago
      Even through the good times this country was backward and is still that way. I was talking to a customer in my local area recently who told me he was delivered a deputy foreman's cheque from a nursing home recently, his take home pay was an astonishing €927NETT a week. I couldn't believe this was still happening and until we challenge our government to change it's pay structure all us self employed and family people are f*cked.
    • TellyAddict  •  5 months ago
      If Ireland produced organic butter I would buy it. Why don't they? I'll just have to buy a bottle or Baileys or maybe Jamesons.
    • tommy  •  5 months ago
      This is our fault we are not buying enougth Irish made products every Irish person should go out deliberately and buy at least one or two extra irish products was in sligo today the shops were full of shoppers but nobody was buying like they used to.
      • buck 5 months ago
        may be u should tell employers to enploy irish people and only then talk about buy irish not a hope of me looking for irish goods while the employ everyone that not irish. get a grip, u go into shops and hotels and they dont have a clou what u are saying and sending ther money home to there one countrey. u dont here there countreys cring out for lones from eu. so when they hier irish people first then i might think about buying irish
      • Dermot 5 months ago
        Why buy Irish when they are over priced and under value.....no chance......sorry but the irish retailer / business still in the Celtic Tiger frame of mind i.e. rip off everyone for as much as possible. Its in the irish psyche.....as for the racist comments of the illiterate Buck....sorry but the only good thing to happen that village you claim as a country of yours since the British left is the influx of come properly cultured Europeans.....you should try learn a thing or two from them......as for them sending money home.....just what were the Irish doing since emigration began!!!?????
    • GERARD  •  5 months ago
      I feel sorry for Ireland. All seemed well they were held up as the Celtic tiger. But it was all just a bubble caused by the Euro and cheap borrowing . Wonder if they read the same book as Gordon Brown? the one were you have the Golden Rules which you dont break. But when you do you dont talk about them anymore, or Gordons end to Boom and Bust. It would appear Gordon must have lent it to most other euro countries too.
      • Rebel Poet 5 months ago
        Celtic Tiger was just borrowing and building that is all nothing else
    • Koppa  •  5 months ago
      Ireland its a "little Sicilly" in all specs excluding the new shiny fckups ..most of them empty buildings around the country!. Bertie was pull as much euro as he could for himself for the all time he was taoiseach and now loughing at peoples in news papers with a 147K pension/year. Now they try to transform Ireland in "Las Vegas" by building biggest casino in the country!! If the economy of this country its last chance is gambling business then its worse then we all know. I read a few comments down the lane and most of them are #$%$ but there're a few good ones like the one with the "round-about"!! Ireland should stay at the level of country side and do what they do the best:farmers!! NOT getting in competition with other "big boys" country like did in "booming" times! There're loads of things wrong with this country like any other in europe or in the world but the level of "MAFIA" reached in here its the 2nd after USA !!!! ..and 1st in front of Sicilly by miles
    • A Yahoo! User  •  5 months ago
      The friendship between Ireland and England has never been better and it seems a lot of the clowns who post vile comments don't even realize that fact!! They may not want to acknowledge it but like it or not its true. The Queen's visit here to Ireland was the culmination of the hard work it took to get the peace process accepted by both sides and that the way it will remain because thats what the majority of Irish people want . And in fact both countries have their problems now with the worldwide downturn and both countries will have to work their way out of it and that will happen in time. There's no use slinging mud here and nobody takes any notice of it anyway--people have more serious concerns than bothering about comments made by imbeciles who only want to stir up trouble. We are all in this together like it or nor !!
      • GERARD 5 months ago
        Well said
      • Rebel Poet 5 months ago
        the Queen came at the expenses of us poor taxpayers, i am Irish and appalled that i had to pay for a Brit that only came to stuff her face and on top of that, we had to pay more for the Dublin's roads to be resurfaced when all around the rest of the country, the roads are such in a bad state that the pot holes are as big as a pond, so please rodger, keep your very condescending comment and keep your useless queen too, we don't need another expense
        the VAT is at 23%, the unleaded has increased of 6cent/litre, the family credit is down by 20 euros per kids, the dole is down to 8 euros per week, meanwhile most of our politicians are taking a pension of 130,000 euros for life, and you are telling me that the Queen's visit here in ireland was the culmination of the hard work and that the majority of irish want it, i think you must be living in cameron's land where everything that shines is good enough to be picked up, you are insulting Irish people with your vile comments
      • LAURA 5 months ago
        Just wanted to say well said Rodger, that sums it all up, finally a bit of sense, I can now leave this #$%$ comment thread happier!! I like English people! unfortunately there are scumbags like mark in every country...thanks, from IRELAND
    • Tom  •  5 months ago
      buy gold and silver the euro is notting more than a promise on a piece of paper.
    • Ronan  •  5 months ago
      Sources say that by 2015 Ireland will have a population of a mere 850,000. Sad times.
    • Jason  •  5 months ago
      the super rich make all the decisions in all countries and most of them are related,we are just a side issue ,what ever country you are from.nothing will ever change.what they want is the common person infighting,exactly whats happening here.wake up they are laughing
    • Kieran  •  5 months ago
      we are under tyranny from banks. it just has a new name and we cant see it.
    • A Yahoo! User  •  5 months ago
      Yep, all money needed now is going to fund Civil Servants gigantic wages and pensions. How can our Politicans go to the shops and meet people without thinking " He or she is going to punch me". Do they do their own shopping ? or get some Garda to do it for them?.
    • Modern Times  •  5 months ago
      I think alcohol could save us all. It's the key to happiness and they've known that in Ireland for a long time now..... Ireland will drink it's way out of trouble..
    • john  •  5 months ago
      watch it drop further now they are trying to get blood out of stone to fund the public sector