CSO reports biggest-ever fall in economic activity

[mild]

Economic activity in Ireland slumped by a massive 7.5% in the last three months of 2008 - the biggest quarterly drop on record.

The latest National Accounts from the Central Statistics Office also showed that consumer spending was down 4%, while capital investment was more than 30% lower and industrial output was down 12.5%.

Exports and imports have also been badly affected by the recession.

For the year as a whole, Gross Domestic Product (GDP) fell 2.3% in volume terms while Gross National Product (GNP) fell 3.1% (the profits of foreign-owned enterprises are excluded from GNP).

Capital investment, in constant prices, in quarter four of 2008 was 30.6% lower than in the fourth quarter of 2007.

The volume of industrial output (including construction) decreased by 12.5% in quarter 4 of 2008 compared with the same period of the previous year.

Within this, the output of the Construction sector fell by 24% during this period.

Output of distribution, transport and communications was down 8.3% while output of other services was 2.2% lower.

[TradCat]

Raising taxes now would be criminal stupidity.

[birthday]

Raising taxes will be essential. It should be done in a way that will spread the burden more evenly across all sectors.
Our ICTU friends seem to think it should only be on second homes and 'trophy' homes.
However cutting public expendidure and getting much better value for money will also be essential. All cuts in public spending including should be done with a view to minimising impact on front line essential services.
Pay rates in public service will need to be examined along with social welfare.
We have priced ourselves out of international markets for example it seems that it is now too expensive to pack Irish cheese here so instead it goes to the UK and then comes back.

[juanpablo]

Sign of the times: picket line outside CSO office in Mahon today.