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Hurley: Irish economy to shrink by over six per cent

Hurley: Irish economy to shrink by over six per cent
Ireland's economy will contract by more than six per cent, Central Bank governor John Hurley has claimed.

The news may be of interest to stock market traders in the country.

Speaking to a parliamentary committee, Mr Hurley added that a drop in Ireland's gross domestic product could result in unemployment growing to more than 11 per cent.

"The contraction in activity has deepened significantly, there has been a sharp rise in unemployment and a rapid deterioration in the fiscal position," he commented.

Next month, the Irish government will announce an emergency supplementary budget following a 24 per cent collapse in tax revenue in January and February this year.

In related news, the Irish Banking Federation (IBF) has said that the Ireland is well placed to manage the distressed assets of foreign financial institutions.

Pat Farrell, chief executive of the IBF, told Reuters that Ireland is in an ideal position thanks to its language, tax and skills advantages.ADNFCR-1681-ID-19067916-ADNFCR