It has come as a surprise to many. The Irish economy has actually shrunk by 1.2% while everyone was expecting it grow.
The Irish Republic’s economy shrank in the second quarter from the previous three months. Gross domestic product (GDP) fell 1.2%, the Central Statistics Office said. It also revised down its measure of growth in the first quarter to 2.2% from 2.7%.
Gross national product (GNP), seen by some as a more accurate barometer of the economy, fell by 0.3%.
The government has been seeking to reassure investors about the economy.
There have been concerns in the markets about the health of the Irish economy and government finances because of continued problems in the banking sector.
Many believe that reason for this sudden shrink is due to the fall in Consumer Spending.
This is really causing a lot of concern as this could end up in a double dip.