A 0.6% q/q contraction in Q1 and a downward revision for Q4 means that Ireland is now back in recession. The breakdown points to renewed weaknesses in consumer spending following a short-lived rebound in Q4. Exports were another weak point and plunged by 3% on the back of still fragile euro zone and UK demand. Nevertheless, Ireland continues to make headway in fiscal and structural adjustment and in 2012 recorded one of the strongest growth rates in the euro zone. The progress was recognised by the EU and IMF, which approved another tranche of bailout funds for the country in May.
Source : Cushman & Wakefield