EU expects Irish economy to contract by 5% this year

The European Commission today said it expected the Irish economy to contract by 5% in 2009 before stabilising the following year amid an expected return to GDP growth across the 27-member bloc as a whole.

In its interim forecasts for 2009-2010 the Commission said that as the slowdown sharpens GDP growth in the European Union overall was expected to fall by 1.8 % in 2009 before recovering moderately to 0.5% in 2010.