Official Confirmation of Ireland’s Economic Recession Despite Growth
Dublin: The Central Statistics Office (CSO) has verified that Ireland’s GDP experienced a contraction of 1.9 percent in the past year compared to 2022, officially signalling a recession. Multiple institutions, including the Economic and Social Research Institute (ESRI), the European Commission, and the Organisation for Economic Cooperation and Development, had previously indicated that Ireland’s economy faced a recession throughout 2023, a conclusion now affirmed by the latest CSO figures.
It’s crucial to note that Ireland’s economic downturn is not an isolated phenomenon but reflects a broader trend across Europe. Concurrently, the German economy also grappled with recession, and Eurozone growth remained subdued. Despite these challenges, ESRI reports that Ireland’s domestic economy continues to exhibit growth. The confirmation of Ireland’s GDP decline in the past year aligns with the earlier assessments pointing towards a recession.
According to the CSO’s latest statistics, the economy contracted by 0.7 percent in the final quarter of the previous year compared to the preceding three months. The CSO highlights that the overall GDP, encompassing patent imports and exports by multinational companies, recorded a decline of 3.4 percent.
Rachel O’Carroll, a senior statistician in the CSO’s National Accounts Division, attributes the GDP drop to declines in the industry, information, and communications sectors of multinational companies, along with reduced exports in the pharmaceutical and technology sectors. The CSO further observes that factors such as political uncertainties, potential disruptions in the sale of COVID-related drugs to the US, and sales of computer chips to China have collectively contributed to the GDP contraction. Significantly, there are indications that major corporations, including Google and Microsoft, may announce staff layoffs in response to these economic challenges.
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