Steep fall in domestic spending

THE faltering construction sector and fading consumer confidence meant domestic spending fell more than the European average last year.

According to Bank of Ireland’s latest economic bulletin, the Irish economy contracted by 7.1% in 2009, which was well below the eurozone average of 4.1%.

The bank noted, however, that Ireland was not the worst performance in the euro area or the EU. Finland recorded a 7.8% fall in GDP while across Europe as a whole the Baltic states contracted at more than double the Irish pace – Latvian output fell by 18%, Lithuania by 15% and Estonia recorded a 14% decline.