Unemployment could hit 8.5% by 2010 as recession bites

THE unemployment rate could hit 8.5% by the end of next year as the economy remains in recession.

A report by Davy Stockbrokers shows the economic outlook for 2010 is clouded, with Irish real Gross National Product (GNP) to shrink 3.4% in 2009 following a 2% decline in 2008.

Davy said there has been a remarkable deterioration in the economy since March, sparked by a tightening of credit availability.