Thursday, March 25, 2010

Ireland is in a Depression

The release of the fourth quarter 2009 Quarterly National Accounts reveal that Ireland is in a depression.  The commonly cited definitions of a depression are:
  1. A recession which lasts for more than two years (eight quarters)
  2. A decline in GDP of more than 10%
GDP in Ireland has declined for each of the last eight quarters and ten of the last 11.
GDP in Q4 2009 was 12.3% lower than the equivalent GDP figure in Q4 2007. (€47.885 billion versus €41.913 billion).  If we were to look at GNP figures the outcome is even bleaker – a drop of 16.7%.
Here we can see when we entered recession and when we entered depression. Click to enlarge.
recession
The trend in both GDP and GNP is still down.  If a depression is worse than a recession, what’s worse than a depression?

1 comment:

  1. Usually Blogs lack depth for serious learning. They are good for intellectual entertainment (in a good sense), announcements (again in good sense -- for example announcing some new ideas, new articles, new products), "general interests" reading. Not the case with your post though, really enjoyed it reading it and it held my attention all the way through!

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