Rising energy costs could cause economy to contract - report

A sudden rise in oil and gas prices could see the economy shrink by as much as 7.5%, according to a new report from Siemens.

The report, called 'The Economic Impacts of High Oil and Gas Prices', identifies Ireland as one of the most vulnerable countries to potential energy price rises.

Ireland imports 80% of its oil and gas, the highest figure in Europe.

Werner Kruckow, CEO of Siemens Ireland, said we would be particularly vulnerable if the global economy also shrank while we were paying higher costs for domestic energy. In that scenario, he said, "We (would be) hit two times (due to our reliance on exports)."