Ireland GDP shrinks 1.2% in second quarter

Ireland's GDP contracted 1.2% in the second quarter, according to an initial estimate released today, confounding analysts' expectations of 0.5% growth.

The figure compares to GDP growth of 2.2% in the first quarter of this year, according to the Central Statistics Office. The country also revised down its first quarter GDP growth statistics from 2.7% to 2.2%. Meanwhile GNP, or gross national product, which adjusts GDP for income flows between residents and non-residents, fell 0.3%. Consumer spending was 1.7% lower in volume terms compared to the same period in 2009, while capital investment declined by 19.9%. Net exports increased by €884m year on year, while industrial output rose 1.7%. World first economist Jeremy Cook say...