Irish economy shrinks in Q4

Irish economy contracted in the fourth quarter of 2010, shrinking 1.6% on the back of poor consumer spending, exports and investment.

The Q4 figure means the economy, supported by a eurozone bail-out agreed in November, shrank by 1% for the year, the BBC reports.

The figure compares to 0.6% GDP growth in the third quarter, according to the Central Office of Statistics.

Over the last months of 2010, consumer spending saw a 0.4% fall, while imports slipped 0.1% against a more severe drop in exports of 1.4%. while investment fell 2.3%.

Dublin has been forced to take €34bn euros (£29.56bn) so far from a European and IMF-funded bailout package, alongside austerity measures, as the country's property and banking collapse has brought it close to financial meltdown.

Meanwhile, the results of stress tests on the Republic's banks are due on 31 March to determine how much more capital they need.