Irish Unemployment To Rise To 15%

Ireland's Central Bank has issued its forecast for the rest of the year and next, saying it expects unemployment to rise to 15% next year.

In its quarterly report, the bank gave a sullen prediction for the coming year, suggesting Ireland could have the highest government deficit in the EU for the second year running.

The report also said the economy will shrink by 8.3% this year and by an expected 2.7% in 2010.

Despite the depressing figures, the report did indicate the worst would soon be over. A spokesman for the Central Bank said: "There is little prospect of any recovery in domestic demand before 2011.

"At that stage, however, the rebalancing of activity in the economy is likely to have run its course and the prospect of some recovery in domestic demand together with a further rebound in external demand should support a return to modest growth overall."

Despite this, the bank warned that the speed and severity of the deterioration in the public finances remains a source of serious concern.

The bank also said that given the current difficulties faced by other economies the performance of Irish exports has been impressive during the first half of 2009.

Yesterday, the Central Statistics Office released figures a rise in value of exports by 3% from €28,754 million to €29,657 during the first four months of this year.

(DW/BMcC)