GDP could take 3% hit if oil prices continue to rise

The rising cost of oil could cause Ireland's economic activity, or GDP, to fall by as much as 3% this year.

According to the latest economic forecast by Ernst and Young, tensions in North Africa could drive oil prices up to $120 a barrel, and may even hit $150 by the end of the year.

Senior economic advisor Marie Diron said that if tensions remained high, oil prices would be likely to go to $120, hitting Irish GDP by about 2.5%.

She said that if the crisis escalated to involve other countries and drove oil prices to $150 dollars, Ireland's GDP could take a hit of 3%.