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IRELAND’S ECONOMY SHRANK by 6.1% between April and June as the impact of the coronavirus pandemic brought the largest quarterly drop on record.
The decline in economic activity in the second quarter surpassed the 4.7% reduction recorded in the fourth quarter of 2008 – at the height of the financial crisis.
Following two consecutive quarters of negative economic growth, the country is now officially in recession.
Despite the unwanted record, the economic contraction experienced in Ireland was not as severe as that seen in many other countries in the developed world.
UK and US GDP fell by 20% and 12% respectively in the same three-month period, while the overall GDP of the Eurozone reduced by 12%.
The impact of the pandemic in Ireland was in part mitigated by strong performance in the export sector.
The annual GDP figure is down 3% compared to the same point last year.
In terms of the domestic economy, in quarter two modified domestic demand fell by over 15% year on year.
Finance minister Paschal Donohoe said Covid-19 was having a severe economic impact.
“Overall the numbers are broadly as expected based on dataflow on the second quarter released over the course of the summer,” he said.
They very much highlight the dual economic impact of the pandemic with net exports positively contributing to GDP in year-on-year terms on the back of robust growth in pharma exports, while the domestic economy suffered a severe hit.
“Despite the severity of the national lockdown, a large portion of manufacturers continued to trade and this is reflected in our export numbers.
“However many of our jobs-rich domestic sectors were temporarily closed giving rise to the large contraction in domestic demand seen today.”
Donohoe said GDP was experiencing a recovery in quarter three.
He sale retail sales were up in July and August while the numbers receiving the pandemic unemployment had fallen by 60% from a peak of 600,000 in early May.
“The policy response to the Covid-19 crisis has been swift and forceful,” he said.
“The government has acted to cushion, in as much as possible, the contraction in private sector demand.
“Measures to support the economy have looked to protect household incomes and to help firms to re-open and to bridge-the-gap for those still affected by restrictions.
This policy response is possible as a result of the careful management of the economy and the public finances in recent years which means that we entered this period of uncertainty from a position of strength.
“The government’s plan for protecting our citizens’ health and that of the economy will be set out in the coming weeks, firstly in the form of a comprehensive plan on living with Covid, quickly followed by the Budget and an economic recovery plan.”
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This is why I struggle with the conspiracy theory that the Govt’s are enforcing a lockdown/quarantine scenario.
No Govt wants the economy to contract. They want the economy to grow.
There is literally no benefit to any democratically elected Govt to see an economy shrink.
To clarify, that the Govt’s are enforcing a lockdown/quarantine scenario without a really good reason like an actual real pandemic with serious and real consequences.
@Tricia G: one nut bag I know thinks the whole covid thing was created so trump won’t get elected.
Yes, this nonsense is from a grown adult living in Ireland, it’s actually painful to listen to the nonsense he spouts
Tried explaining that every county in the world has no interest in crippling their own economys just so trump won’t get elected, but there’s no reasoning with such a person.
@Barry: They think that the Coronavirus was also started to that they can vaccinate everyone with a Bill Gates chip to control their minds and that this will be facilitated with 5G towers. Imagine living in that murky demented mindset. Shudder.
@Tricia G:
It’s not something I believe in but the theory is “valid”. The poorer someone is, the less they can absorb in terms of a crisis. The rich on the other hand prosper. They ride it out, then buy up assets etc for less than they are worth in a depreciated market, once the crisis abates, they sell with a significant profit. Others would argue that this is common sense!!
@Barry: I’m constantly amazed by the real people that buy into that insanity! Like proper, full on, buy in.
It’s so completely and utterly illogical. It has no bearing in the real world, how real people act and behave. And that’s ignoring the literal 1000′s of professional people that have spent their lives working and studying to suddenly just decide to lie and defraud.
These people couldn’t even have a Golf dinner without being immediately caught out! Yet for conspiracy theories to work, the number of people that have to keep silent and do their exact job is huge.
Anyone that’s ever depended on another person or group in a project knows how ridiculous this is!
@Wreck Tangle: They take advantage of events, they rarely instigate them (though an exception has to be made for Brexit which benefits Putin. And the few in the upper echelons who will make a killing).
I don’t doubt there are those currently taking advantage of this pandemic, there always are (The Shock Doctrine by Naomi Wolf) but that doesn’t mean they faked it.
@Tricia G: In fairness, governments care about being re-elected not the economy
@Tricia G: Agree. I think this is the problem with misinformation. It’s very easy to present facts in a way that convinces people to misinterpret information – Even when there is no logic, scientists, who common to what many believe, dedicate their lives to work for our good, not economy manipulation say that that corona is not man made.
@LangerDan: Where do the lizard people and the Bilderbergs figure in all this, and have I got enough tinfoil for making hats? That’s what I need to know! ;)
@LangerDan: What’s funny is this theory is all based on a research paper published in 2015 with involvement from Bill Gates as the paper included the term “coronavirus”.
They thought that was a smoking fun referencing a virus which shouldn’t have existed at that point without understanding “coronavirus” is a medical term which has been around for decades.
@Barry: name and shame
@Barry: Name and shame or it didn’t happen, I think you’re just making things up. Fact check
@Wreck Tangle: You say “thats the problem with misinformation and how people easily fall for it, but the same people you are preaching to about misinformation, have been caught hook line and sinker when The Atlantic came out with the Trump story the otherday.
Its now10 people who were there that day that have disputed the story, but they choose to believe the 1 anonymous source because it suits their narrative . The hypocrisy on here is gone next level now.
@Tricia G: Not true, last recession the Government did everything they could to contract the economy further, raised taxes, reduced spending all under the assumption that austerity is the best mechanism for getting over the credit crash.
@James Walsh: Ok James 99.9999% of people know lizard people are not a real thing, but do you actually think the Bilderberg group don’t exist?? I don’t see how you can compare a conspiracy theory with an actual organisation, its very misleading… Use better comparisons in the future, like Lizard people/flat earth or something like that.
@James Walsh: https://www.cnbc.com/2019/05/28/kushner-google-and-microsoft-to-attend-secret-bilderberg-meeting.html
Oh no… Kushner was there, you better make enough tinfoil hats for your mates on here aswell hahaha
@Tricia G: I haven’t heard anyone say the virus was created to get trump out of office.
I have heard people plausibly question the current narrative though.
I distinctly remember nphet saying that the number of corona virus cases don’t matter, the numbers in icu and dying are what matter. Now that argument has been turned on it’s head when hardly anyone is in icu and virtually none are dying (In Ireland anyway and indeed across Europe and China where the virus hit first).
Plus every news channel ,who as far as I can see are all anti trump, are pushing this new narrative.
This situation wasn’t created deliberately but it’s very plausible that it’s being used and prolonged to get trump out of office. It’s also plausible that big pharmaceuticals see it as a means of making a lot of money from vaccines and don’t want people thinking the virus is nothing to worry about. That would certainly explain all the fear mongering in the press which is probably killing more elderly people than the virus itself.
What I’ve said here is hardly a stretch and I’d say it’s a lot closer to what this person you spoke of was saying to.
@Tricia G: Fair play to you Tricia you are looking at it from a few different sides trying to see what’s happening. I myself have less confidence in the professional classes in this country and others. To get a job you have to not rock the boat and follow the script. Also don’t discount the fact that most people are sheeple and love in fear on a daily basis. Fear is a productive emotion in dail life but not in a globalised world. A case in point is why do doctors promote the food pyramid when the dogs on the street know that a low carb diet is the best for weight management? People, good people are literally dying of diabetes when all it would take is to reduce their carbs.
When the media and politicians are pushing an agenda the rest of the professional classes row along to get along.
Also I strongly think that the west has been subverted: https://youtu.be/CV3FEWGNwek
✌️
@John D: Bang on man
@Tricia G: There is and for the same reason the flood the country with immigrants. The wealthy in Ireland use both to drive down wages in order to maximize profits of the corporations they own. Do it on a global scale and you have in one fell swoop lowered the standard of living of most people – except – the rich.
Politicians, Ryan Tubirty and Civil Servants still get paid and your job is safe. If you work in retail and your minimum wage is cutting into profits of the likes of Tesco, Pennys and PC World not so much.
@whatistheseason: food piramide changed few years ago, carbs are not so promoted anymore.
@Tricia G: it is no benefit to them to have the country €260 Billion in debt, but it still is
@Nikolina Fiume: Yeah I heard that said a few times but it’s still the same misleading thing. Fair enough they are warning against sugar. But they are still demonising dietary fat and salt, both of which are necessary in a healthy diet. They talk about vegetables but don’t make the distinc between starchy (basically sugary) veg and non starch veg (basic fibre). They also keep on about whole grains which is basically more starch. https://www.hse.ie/eng/about/who/healthwellbeing/our-priority-programmes/heal/healthy-eating-guidelines/
I get all my health info from THE source: Dr Berg on YouTube
@Tricia G: it’s 2020 and you still believe that government cares about you or economy
Open up society ASAP ffs or this will just get worse and worse.. THE VIRUS ISN’T GOING ANYWHERE WE HAVE TO LIVE WITH IT!!
@SB: We have to control it’s spread as much as we can until we can find another effective way to restrict it’s impact.
This doesn’t have to be an all or nothing gamble!
@Tricia G: by what keeping with restrictions which is what caused this recession in the first place, lock down doesn’t work it hasn’t worked in numerous countries, the only solution is to open up as normal and protect those who are most at risk, the vast majority of cases now are younger people and the vast majority of these will recover no problem.
@Tricia G: get your anti tinfoil hat cream ready. They will come for you. I made the exact point to friends a few weeks ago, why would any government put themselves under so much pressure with restrictions if they weren’t needed
@SB: Lockdown DID work. We flattened the curve. And it also worked in numerous other countries.
It WORKED, that’s why deaths aren’t higher, it’s why hospitals weren’t overwhelmed!
Yes, the vast majority of cases now are younger people because they’re the ones out and about and it’s nigh on impossible that they’ll not come into contact with people that WILL suffer more from it.
Honestly, this ability to look at what was done, what actually worked and then decide,nope, that had no impact is really disingenuous!
@SB: what lockdown is there, exactly? As far as I can see, most things are opened up, with the ones that haven’t yet being for the very reason that opening them up could risk more spread, more cases and an eventual need to lock down everything again.
@SB: What the hell are you saying “lockdown doesn’t work”. Can you give us the figures for inspections and deaths if we hadn’t locked down, please?
It’s a fact that lockdown mitigates the spread. It doesn’t absolutely kill it but then the public doesn’t absolutely always stick to the guidelines, do they?
@Tricia G: eejits will bring you down to their level, don’t get into an argument with them.
@SB: lockdown worked we had over a thousand cases in one day and 77 deaths. It is affecting mostly young people now because it has not got back into nursing
Homes etc. I will be listening to david glynn before taking your advice.
@Brian Madden: yes definitely. Lockdown has worked and the battle is now to confine whatever presence of this there is in the community to those who can fight it off. The danger is that even those who beat it may be left with long term damage.
@Tricia G: Me kids are dying of hunger because there’s no food in the house but I told them that’s ok because they have to do their bit to control the spread of Covid-19.
Seriously we have to let businesses open including pubs. Covid-19 is here to stay along with all the other cold and flu viruses that went before it.
@JusticeForJoe: my point exactly it doesn’t kill the virus it’s only a stop gap, therefore it doesn’t work so what do you bright sparks suggest an infinite lock down and watch as the economy crumbles completely and society disintegrates, what is wrong with some people, lock down fanatics, I’ll say it again you cannot have an infinite lock down or society as we know it will crumble completely.
@Brian Madden: I bet your one of these people who believe everything your told by the government
@JusticeForJoe: Spain had one of the most draconian lockdowns in Europe yet has the highest incidence in the EU at the moment.
@Syl & SB: Listen to yourselves… nobody here is even calling for a lockdown. But sensible people want a sensible approach to balance the risk and reward. You saps just want to hug your drinking buddies
@Syl Farrell: because they opened up too quickly, including pubs and clubs. Majority of the cases there are being traced back to large group gatherings.
@Tricia G: it kinda does. Half measures dont work. People need certainity. The virus doesn’t give a s**t about your moderate outlook and neither do business people. Another lockdown will absolutely destroy the economy. How secure is your income?…. Im 22 and trying to figure out what’s the best future I can take with all this. I’m disposable tho aren’t I ?. Sacrifice the futures of the young to save the old. Fair trade isn’t it save a thousand lives at the cost of over half a million lively hoods. Never mind all the people who will die from other illnesses. Which if I remember correctly one report said could actually exceed the amount of people dying from coronavirus. Drug addiction, suicide, homeless. How many marriages will break apart ?. How many rural communities destroyed?
This is just a temporary glitch. Once the small publicans agree to sell out their licences for 10% of their true value to the Wetherspoon type companies and the small family run hotels agree to house the multitude of economic migrants whose identity accidently slipped into the medetiraian Sea before been corralled into 8 per room DP centers, the whole economic panic will evaporate
@Eugene Conroy: wow. You poor man.
@Eugene Conroy: Drivel
@Surly Duff: Eugene is actually talking some sense! Well said!
I suspect the only reason that Ireland outperforms other countries is to do with multinationals routing money through Ireland which lands in GDP. This money is not value generated within Ireland’s economy, would be great to see the real number is this was removed.
@Wreck Tangle: it’s true that the multi national sector masks to an extent the effect on the rest of the economy. Still, there are many many people employed in pharma and tech on good salaries here. Also the multinationals pay loads of Corporation Tax which helps us pay our way. Ireland is getting off lightly so far compared to the UK and even the eurozone.
What we really need now is to get the aviation industry back so we can get some tourists and get the hospitality industry moving again. Simply ridiculous that Germans and Brits with lower rates of Covid are being put off from coming here. Why can’t we test at the airport?
@Ciaran O’Mara:
Just to clarify, I’m not anti-multinational, I think without them Ireland would be in the stone age and it’s where I built my own career. I just think GDP cannot measure Ireland’s economy or more importantly problems can be easily masked.
I think the problem with tourism in Ireland is that the airlines have not come looking for a bailout so the government don’t feel in a rush. I’m living in Switzerland where the government are working hard to get tourism back up and running but my feeling is, this is to avoid Swiss coming seeking more money. Also worth noting, I cant be bothered flying this year to Ireland. If I go to Zurich airport, I have to go through international departures (no Schengen). It’s already a pain in the behind, as I hear from others, flying outside Schengen at the moment is a total pain on return. This might also give an explanation.
@Wreck Tangle: You could just use the GNP figures which exclude multinationals
@Wreck Tangle: It’s 16% without multinationals included, heard it on the RTE news earlier. The UK economy contracted by 20%, so they said the 16% without multinationals is a more accurate reflection of the current situation in Ireland.
FG tanking the economy, while they are off wining and dining Vulture’s
@alphasully: Does that mean you think the virus is a hoax?
@alphasully: Dining Vultures so they can encourage them to buy all our homes. Classy from FFG and then we vote them in again!
Phew! Good job he got the recession announcement in before the budget next month. Now every person’s life he makes even worse, he can justify with….”Due to the recession.”
The TD millionaires are not struggling to make ends meet its the ordinary people and they don’t care once they have control
@Margaret Kane: what a load of nonsense, can you not think of something more constructive?
@Margaret Kane: ah sure they’re doing a bang on job might as well reward them selves with another top up on their wages and supply another few super dooper Jr misisters. Country makes me sick to my stomach.
And they get paid so much to tell us that there is a recession!!!!! Dah ,I think we’ve guessed that .
@Justin Hanley: Yeah, it’s still better to have the actual figures then to just be guessing…….
@Tricia G: I think when Ireland published their first quarter results, I.e. Q1 they showed we were not in contraction however they then recalculated the figures. More austerity from FG & FF directed at the middle class and working poor
Not looking forward to the budget, taxes incoming
@Sean: There is no need for increases in taxes, the option to borrow at close to 0% will be taken
I cant think of any country that would not be in recession after the last 6 months.
@Giddy: they could have closed the borders and avoided the worst of it but EU said no.
@Giddy: Vietnam may be the only one I can think of, apparently expected to grow by 2-2,25% (lower than expected but that’s still impressive). Closed borders immediately, didn’t dilly dally about, and implemented the 14 day quarantine on arrival while exporting much of the worlds supply of masks and testing kits. After a few months life was back to normal bar the tourism sector. Added to that the fact that many western companies are avoiding China due to the increasingly aggressive policies and moving there instead and it leads to one of a kind situation.
@Giddy: But I get the point, I doubt we will be the worst hit by this decline. I am sure there will be worse and better off nations in the EU, and we will be somewhere in the middle.
We have a huge portion of our economy that work in the services sector. Govt COVID policy is making these job extinct, sinking the economy and going to drive people into poverty. Let me ask this. This time last year say for the month of August, how many pints, coffees and meals out did you buy/spend money on. Now work it out for Last month and compare the two. That spending created jobs in services. Without that spending those jobs die.
We are sleep walking into a economic disaster… No one to blame but our govt policy.
All the upcoming broken promises explanations will end with the line,, Largest Ever Quarterly GDP drop….
Why is it a load of nonsense. I would imagine that most people would agree that an individual who has an income of between 90 and 160k with daft expenses on top have no idea what the real world is like. Why else would ministers on four times the average wage set the minimum wage below what is deemed to be a liveable wage.
@Rex Tilson: Sorry, that was meant as a reply to John Gavin
Wait tíl budget tax tax tax the working people
Self-inflicted, but you can be sure the people who brought it about, will not suffer any hardship personally.
PUP is also due to close to new applicants on Sept 17th, So no more people being put out of work with lockdown restrictions after that I assume?
We could do without a recession, government should just write it off. Its bad enough as it is without adding a recession.
Hospitality sector more broadly are down not just the airline industry.
cue announcement on the pub’s reopening!
They looked deeply into the crystal ball for this header . Smh . My dog is more intuitive.
Thanks pascal
Erra so what
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