8.5% decline in economy may be bottom of cycle

THE year-on-year decline of 8.5% in the Irish economy in the first quarter of 2009 may turn out to be the bottom of the cycle.

That sharp fall in output could mark the low point of the economic slump in Ireland, according to the latest Bank of Ireland assessment of the economy.

In its quarterly bulletin, the bank says the annual rate of contraction is likely to slow to 4% by the fourth quarter, giving a drop of 7% for the year, which is more optimistic than the Government’s projection of around 9%.