The Republic of Ireland has fallen back into recession according to official figures despite the country undertaking a massive and painful austerity drive to cut its debts.
GDP for the Irish Republic declined by 0.6% in the first quarter of 2013, but it was only after officials revised and downgraded the country’s performance in the final quarter of 2012 that recession was confirmed. The two consecutive quarters of contraction mean that Ireland suffered from three consecutive quarters of contraction, dragging it back into recession for the first time since 2009.
Adding to Ireland’s woes was data that showed that personal expenditure declined by 3% on a seasonally adjusted basis between the last quarter of last year and the first quarter of 2013. Exports also plummeted by more than one billion Euros over the quarter.
Since the nation’s bailout and the imposition of austerity Irish people have endured huge cuts to their salaries, big tax hikes and an unemployment rate which has tripled to 14%.
Previously EU leaders had hailed the nation a success story with some hailing it as the shining example of austerity. Ireland was the second European country to receive a bailout and is due to complete the terms of the payout later this year.
The shock news of Ireland’s slide into recession is certain to add to the anger being felt by Irish citizens over leaked tapes of bankers laughing and joking about a government rescue of the financial system, a rescue that plunged the country into financial chaos and also bankrupted the country.
Analysts say the country has enough cash to cover most of its funding needs through next year, however, and should exit the aid deal on schedule, providing the European Union with a badly needed success story for austerity.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3006
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8548
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3998
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6665
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7688
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1698
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7143
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6000
(Correct as of 15:45 pm GMT)