‘GDP could fall 7.5%’ in global energy price increase

THE Irish economy could be one of the worst affected by any sudden rise in global energy prices — with a new survey suggesting GDP could fall by as much as 7.5% on the back of a sudden price increase.

The fact that Ireland — as a small economy — is heavily reliant on export demand and highly dependent on imported fossil fuels means it would feel the effects of large international oil and gas price rises more than larger economies like the US, Britain and the wider eurozone.

European engineering giant, Siemens conducted the report into Ireland’s vulnerability to potential energy price shocks and has called on the Government to develop a high-level strategy covering the next 40 years, to benefit from the potential of renewable energy outlets. It is recommending greater use of electricity in the nation’s transport system and the positioning of Ireland as an attractive test-bed for sustainable pilot projects.