Irish Economy Goes into Recession

WTF?_2

Generali wrote: »

Construction is about 9% of GDP in the Republic of Ireland and 10% of GDP in the UK so the impact should be similar. The problem of oversupply seems to be worse in the ROI.

Financial services are 7-8% of GDP in the UK and about 10% in the ROI.

According to The Economist, credit growth has been an astonishing 35% in the ROI for the past few years! That should be set against growth rates in excess of 5% (or more than double the UK's) but is still very high.

I think the ROI is in a spot of bother too, economically speaking. The thing they really have going for them is that their Government is running a budget surplus at present I believe so business doesn't face the problem of 'crowding out' (limited funds available to be borrowed being used by the Govt rather than being invested productively). They also have high and stable remittances coming in from abroad due to the diaspora which still exists despite the recent good times economically.

You've under-estimated construction - it was a massive industry, in 2007 at least

http://www.amaresearch.co.uk/Irish_Construction_Market_07s.html

The construction industry now accounts for around one quarter of Ireland’s economic activity and has become a major growth sector within the context of the overall economy. As a percentage of GDP, construction output represented around 19.5% in 2006 and 13% of the national labour force are now engaged in construction activities. Although now slowing, output of Ireland's construction sector has risen rapidly over the past decade, with strong demand for residential, commercial and infrastructure development, underpinned both by rapid economic growth and by the country's demographic profile.

:eek:

The ruling party, Fianna F!il, has been described as the 'Political Wing of the Construction Industry' by some .....

Generali

To make it clear, my figure is for housing construction. Figures from the BoI.

GracieP

2 years ago 29% of the work force was employed in construction. Residential, commercial and National Development Plan. We have now built way too many houses, way too many commercial buildings and the government has run out of cash for most NDP work.

Cities such as Limerick have economies reliant on 1 multinational company like Dell. Which is looking increasingly likely to close in the near future. And we have an extremely expensive public service. And the highest paid national leader in the western world, our Taoiseach pays himself a higher salary than George W Bush.

WTF?_2

GracieP wrote: »

2 years ago 29% of the work force was employed in construction. Residential, commercial and National Development Plan. We have now built way too many houses, way too many commercial buildings and the government has run out of cash for most NDP work.

Cities such as Limerick have economies reliant on 1 multinational company like Dell. Which is looking increasingly likely to close in the near future. And we have an extremely expensive public service. And the highest paid national leader in the western world, our Taoiseach pays himself a higher salary than George W Bush.

On the positive side, years of such 'cute hoor' politics allowed Irish politicians to play the EU to the max. when it came to grants, tax breaks and concessions.

I think there's a culture of 'screwing the system' in Ireland left over from centuries of British rule when it effectively meant 'screwing the English occupiers'.

Unfortunately, the electorate doesn't seem to have caught on that they are now funding the system with their taxes. And no more EU cash either.

GracieP

!!!!!!? wrote: »

Unfortunately, the electorate doesn't seem to have caught on that they are now funding the system with their taxes. And no more EU cash either.

Exactly and it's why when cabinet ministers such as Michael Lowry are found guilty of taking backhanders and massive tax evasion and expelled by his party, the bloody electorate re-elects him as an independent as they feel sorry for him.

I won't even start on the alleged activities of our former Taoiseach Bertie Ahern.

And from what I can gather the EU is more than a little annoyed with us, for wasting everything they have given us.

jamescredmond

dorsetjohn wrote: »

Not all in Northern Ireland . Lord Mountbatton Of the Coast

there was a macabre joke about him at the time of the bombing.

something to do with dandruff, but I can't remember the punch-line.

jamescredmond

so, if ROI is suffering HPC, does anyone have the figures peak?

luvpump

jamescredmond wrote: »

there was a macabre joke about him at the time of the bombing.

something to do with dandruff, but I can't remember the punch-line.

After a quick google search it cam up as.....


"How did the know lord Mountbatten had Dandruff ?

They found his Head & Shoulders on the beach. Boom. Boom"

jamescredmond

tasteless but timely.

I thank 'ee kindly.

GracieP

jamescredmond wrote: »

so, if ROI is suffering HPC, does anyone have the figures peak?

Unfortunately there is no public record of sale prices in Ireland.