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Wed 07 Jul 2009Economy to shrink 11% over next 18 months, says Central Bank

THE ECONOMY will shrink by 8.3 per cent this year and contract by a further 3 per cent in 2010, when unemployment will peak at “15 per cent plus”, according to the latest projections from the Central Bank.

The outgoing governor of the Central Bank, John Hurley, said there may be “some recovery” in the economy in the second half of next year after an “extraordinarily difficult” 2009, but the “gradual” return to better economic fortunes would not take proper hold until 2011.

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