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A GLOOMY ANALYSIS from the national economic think-tank says the Irish economy is “bouncing along the bottom” of an economic rut and that Ireland’s economy will probably contract this year.
The latest quarterly economic commentary from the ESRI forecasts that Gross National Product (GNP), a measure of Ireland’s ‘domestic’ economy, will shrink by 0.2 per cent.
Gross Domestic Product (GDP), which includes Ireland’s booming export sector, is expected to increase by 1.8 per cent, however – which would be good news given that it is GDP which is used by the Troika to set Ireland’s deficit targets.
By both measures the economy is projected to grow in 2013, with GDP rising by 2.1 per cent and GNP up by a third of that amount, 0.7 per cent, a modest growth which means unemployment will remain high.
The report also warns that though the public finances are improving, the scale of the adjustment needed remains large – pointing out that even if the costs of servicing the sovereign and banking bailouts were removed, Ireland would still be taking in more than it earns.
Irrespective of whether spending cuts are specifically targeted or implemented across the board, “significant cuts in public expenditure need to be implemented to return the public finances to a stable pattern,” the report says.
The ESRI’s advice echoes that of the Irish Fiscal Advisory Council, which for the second time has advocated that the government implement its full requirement of spending cuts in one Budget – suggesting an all-in-one Budget would help Ireland get back to the bond markets quicker and mitigate any economic hardship.
The ESRI report, which was distributed earlier this week but embargoed until this morning, was compiled before the Central Statistics Office published figures which showed GNP as having grown by 4.3 per cent in the second quarter – a growth which may undermine the ESRI forecasts.
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Best of luck Shannon. Congrats that you are now free from the grip of the DAA that was destroying you. Nice Airport to fly in and out of.
Great news for Shannon airport and from the surrounding areas. The airport is a pleasure to fly in and out from as a regular flyer so nice to get some good news in regards to its development.
Great news for Shannon.. Feck all the begrudgers..
Now that the DAA has creamed the best of Shannon traffic….
Ryanair will slime back big time, o leary doesn’t want to deal with the DAA, he needs Shannon if he goes ahead with transatlantic flights. Shannon will take off(excuse the pun) big time, also a lot of other airlines will fly in to Shannon, especially US airlines.
I wouldn’t blame ryanair for not wanting to deal with the DAA. There money grabbers with terrible track records when it comes to running a airport. I wouldn’t be surprised if shannon is a huge success and puts Dublin airport to shame.
Great news
I’m confused, how can something that’s loss making, decrease in passengers of 60% create 850 new jobs. this plan does have the hallmarks of the Irish government all over it.
Maybe the moderator will explain why he/she removes truthful comments from this and other pages, comments such as..
Some Dublin and Cork politicians as well as civil servants colluded with each other so as to destroy Shannon Airport, anyone who denies that there was a conspiracy against Shannon and the Mid-West is living in cloud cuckoo land or the land of self denial.
The fact is that the DAA took €1 billion of what was rightfully Shannon’s money, they took this money by getting a gift of Aer Rianta International from Seamus Brennan.
The only interest the DAA had in Shannon was to collude with Dublin and Cork Civil servants and politicians to destroy Shannon for their own greedy, parochial, narrow minded gain. It was the old “Cork and Dublin” old boys club. A club which was (and is) horrified at the though of a major, successful International Airport only 10 minutes drive from Limerick City.
Could not have said it better myself !!!
Great news for Shannon Airport, and hopefully ye will get back the business that DAA WRONGFULLY took from ye…….Great Xmas present for all in that area, and the jobs will come imho..
wonder will aer lingus work with them, as most of the time we from kerry have limited flights or no flights for months to new york,,, but thanks to delta for picking up the slack and cheaper prices,, cant believe they are giving them free reign as they have been trying to shut them down for years, sad as its the nicest airport to show ireland at its finest,, driving in and seeing castles, rivers,, lush green fields,, i really hope this is for the good and our government not trying the sneaky,,, i for one love shannon airport, and pray they get it back off the ground and go for it,,
Brilliant news for Shannon , love using Shannon airport , it’s such a shame so few flights leave the airport these days but this is about to change . Would always be my Airport of choice , it’s quick to get through , staff are brilliant , well done Shannon airport
everyone loves Shannon Claire, remember going there as kids just to watch the planes land, cycling from Limerick to the “golf ball” to get a better view…..great memories…..awesome
Mega news for the Airport as the region had been neglected for some time now . Good luck for the future to all concerned.
Great news for Shannon for a change. Merging with DAA in the first place was a bad and calculated move by Bertie & Co. A lot of flights have been taken by DAA for Dublin’s benefit but can eventually be wooed back to some degree if done properly.
Let’s hope it bring some much needed prosperity for the region once more.
Shannon should now sue the DAA for the return of the €1 billion that the DAA took when Aer Rianta International was gifted to them by seamus brennan, plus the €160 millions that ARI make every year.
The DAA tried to destroy the Shannon Region, it’s time to make them pay.
Great news. Now we need the routes. Had to leave Limerick at 1am yesterday morning for the 1st flight out of Dub to Brussels. It would be great to crawl out of bed and take the handy spin out to Shannon.
Likely to be a very chilly day in hell when this delivers 850 jobs.
This will deliver 10,000 jobs within ten years……………….We have got the very thing that Dublin and Cork were (are) afraid of, a totally Independent Airport, a strong aerport = a strong region…..we will have both.
Yes Gerard,
I also see you got loads of thumbs down from the serendipity brigade.
@ AJ
You’re a dreamer. You’re loyalty to the region is admirable but reality will be dissapointing and as for
‘he needs Shannon if he goes ahead with transatlantic flights’
Shannon hasn’t been needed for transatlantic flights since the 80′s
@josh….Shannon was and is the place most US airlines want to fly to. Aer lyingus (sic) and the DAA put a stop to most transatlantic flights coming in to Shannon. Most US tourists want to fly directly to the West, Aer lyingus stopped them. Dublin is just another City to them.
Shannon will boom, to the disgust and dismay of Dublin, Cork and Mayo……another reason for these people to bitch about the Limerick/Shannon Region. Raising a mug of tea to this momentous decision.
AJ, the same begrudges didn’t want Limerick to have a university.
This is great news for the Midwest.
great news was at Shannon airport over Halloween it’s a ghost airport with at most 1 flight an hour. it’s a very handy airport for us in the west, if only it flew to more destinations, since Ryanair pulled most of its flights out the place it has become very quite.
Can’t wait for more flights – biggest problem with Shannon is no flights going out of there (for me anyway). So tired of the Dublin/Cork drive or the Heathrow connection to get anywhere other than the UK.
Happy Days and I hope it delivers the jobs to the region
Why was my comment taken down. It was not offensive to anybody.
Where is the freedom of speech on the journal these days.
Great news for Shannon Airport – Clare Galway and Limerick. Lets get Michael O Leary back ASAP. Ryanair should make Shannon its Headquarters. Lets get new flights ASAP.The people of the Mid West must support Shannon in preference to other airports in Ireland. A big thanks to Minister Michael Noonan – great work for Limerick and Clare
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