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.