Budget must address economic realities, says IBEC

Employers group IBEC has today reacted to the news that Ireland is now in a recession.

GDP fell for the second consecutive quarter, matching the technical definition of a recession.

"The only small silver lining in today’s figures is that the traded sector is holding up relatively well in a turbulent global economy, with goods exports growing by 3% in the second quarter," said IBEC director of policy Danny McCoy.

"However, services exports, seen as Ireland’s future growth engine, only increased by 1.5%. As the domestic sector of the economy is shrinking, it is vital that Ireland restores its waning competitiveness.

"The downturn in the construction sector has now spilled over into the rest of the economy, as consumer spending contracted by 1.4%.

"It is clear that the Irish economy is heading for difficult times and the realities of Ireland’s economic circumstances must be addressed in the Budget and other Government policies."