OCR 2888 -  Irish Property Blues

Once a bubble bursts the results can be severe. The construction sector in the Irish Republic is suffering from a steep downturn in output amidst the collapse in property prices and the global financial crisis. Ireland became the first Euro Area economy to hit an official recession this year.

Economists expect Ireland’s real gross domestic product to contract by 1.9 percent this year and 2.8 percent in 2009. Construction sector production is now more than 20 per cent lower than it was at the start of the decade. And unemployment for the economy as a whole is now higher than it was in 1998.

Ireland economy needs stimulus