The Republic of Ireland today became the first EU country to slide into official recession since the start of the Credit Crunch.The GDP (Gross Domestic Product) in Ireland has shrunk in two consecutive quarters as reported today. GDP dropped by 0.5% in the first quarter of 2008, and a drop of 0.3% has been reported for the second quarter - Technically an economy has to record two consecutive quarters in order to be officially in recession.
It is expected that Germany, Spain and the UK will also succumb to recession before 2008 is out. A great many people believe that the Credit Crunch is a recession, today's news should serve to draw out the distinction between a squeeze on credit reserves and an actual slow-down in the economy.
Related posts:
Is there really a credit crunch?
Is this a recession?
Credit Crunch News
The Multiplier
2 comments:
Credit Cruncher - I assume that Irish supermarkets are full of UK produce, so will there recession hasten our own?
I don't imagine that the Irish Republic relies that much on UK produce, as it has it's own agriculture and is just as likely to have produce from the rest of the EU. (we don't make a heck of a lot over here any more...)
It will no doubt contribute in some way to the slow-down of economies across Europe - and there is little doubt that the UK will soon be declaring recession too anyway.
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