24 Sep 2010

Irish economy shrinking

6:06 am on 24 September 2010

The Irish Republic's economy shrank in the second quarter from the previous three months.

Gross domestic product fell 1.2%, the Central Statistics Office said. It also revised down its measure of growth in the first quarter to 2.2% from 2.7%.

Gross national product, seen by some as a more accurate barometer of the economy, fell by 0.3%.

The Central Statistics Office said the economy had been hit by a fall in consumer spending - down 1.7% compared with the same period last year.

But exports showed strong growth, up 884 million euros on a year ago.

The BBC reports there have been concerns in the markets about the health of the Irish economy and government finances because of continued problems in the banking sector.