GDP declines by 8.5% in first quarter of this year

FIRST quarter figures show the economy collapsed dramatically, confirming fears the country is in the grip of the worst recession of any developed economy.

Central Statistics Office figures showed an annual decline of 8.5% in GDP in the first quarter of 2009, driven by a collapse of 34% in capital spending and a 9% decline in consumer spending.

The collapse in GNP, which excludes the profit of multinationals, was substantially worse at 12%.