Irish economy in record slump

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Once known as the Celtic Tiger because of its strong growth, the Irish Republic has suffered its worst decline for many years.   The Irish economy shrank by 7.5 percent in the last three months of 2008 compared with the same period a year earlier, according to the Central Statistics Office (CSO).   Largely as a result of the domestic housing slump, the construction industry suffered a 24 percent fall in output, the biggest on record.   In the whole of 2008 the economy shrank by 2.3 percent, its first decline since 1983, giving Ireland the unfortunate distinction of being the first eurozone country to fall into recession in the current global economic crisis.   Analysts suggest Ireland is having a tougher time than most during the recession because added to the general economic crisis it is also dealing with a dramatic collapse in house building. Only 45,000 homes were built in Ireland in 2008, compared with 90,000 in 2006.   A lack of government funding for public infrastructure projects has spread the industryÔÇÖs decline into the commercial sector.   Ireland's budget deficit is expected to reach 9.5 percent of GDP in 2009, the highest in the EU and far above the EUÔÇÖs 3 percent rule. Meanwhile, unemployment gone up from 5 percent at the beginning of 2008 to nearly 10 percent now, squeezing the public purse even harder.   *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *