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Fall in growth could lead to recession for Ireland

Oct 4, 2023 08:04 By News Northern Sound
Fall in growth could lead to recession for Ireland
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The ESRI says rising prices and a fall in exports means a 'sharp' and 'widespread' fall in growth in the final months of this year

There's a warning the Irish economy could fall into recession this year.

The Economic and Social Research Institute says rising prices and a fall in exports means a 'sharp' and 'widespread' fall in growth in the final months of this year.

It's advising the government not to cut taxes on budget day beyond what is absolutely necessary to keep wages in line with inflation.

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Associate Research Professor with the ESRI Conor O'Toole says it's not the type of recession which will really impact on people's daily lives.

"Will it feel like a recession for people on the ground?" he asked, "I don't think so.

"It's really a case of extraordinary growth in the multi-national sector just coming back a little bit.

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"It's like a tale of two economies - the domestic economy operating reasonably well with full employment," the professor explained, "It's a recession in numbers but not a recession in the feel on the ground."

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