The first quarter is likely to have marked low point for the Irish economy in the current recession, according to a report from Bank of Ireland.
In its latest quarterly outlook the bank said it expects the economy to contract by 7 per cent this year with the bank’s economist Dan McLaughlin predicting this will drive unemployment to 13 per cent.
The report found a sharply divergent performance in different parts of the economy with domestic demand falling 6.6 per cent compared to a net growth of 16 per cent for exports, led by pharmaceuticals and medical devices firms.
While a further economic contraction for Ireland is forecast for 2010, with signs that the UK and US economies may return to growth in this quarter means exports could pick up next year.
