IBEC: Pace of deterioration in the economy slowing

Employers' body IBEC today said that the National Accounts for the second quarter of 2009 from the CSO reveal further signs of stabilisation in the Irish economy.

On a seasonally adjusted basis, GDP was unchanged from the first quarter of 2009, substantially better than many forecast.

Commenting on the data, IBEC Economist Reetta Suonperä said: "The pace of decline in the Irish economy was at its most rapid at the end of 2008 and in the first months of 2009. National Accounts, along with a number of other indicators, now show that the pace of deterioration is slowing substantially.

"The global economy is pulling out of recession. Ireland will feel the benefits of the international upturn with a lag of some months, but we should see the Irish economy pulling out of recession by the middle of next year.

"Though GDP continues to fall by 7.4% on an annual basis, there are some positives in the data. The multinational sector continues to perform well and as a result Irish exports are holding up relatively well in an international context.

"Consumer spending also seems to have stabilised, with a seasonally adjusted change of 0.5% over the first quarter."