Skip to main content

Double Dip Recession...

Two in five executives fear 'double dip' recession...


Almost 40 per cent of Ireland's top chief executives fear the country may face a "double dip" recession, according to the Sunday Independent Business Leaders Survey, a poll of Ireland's top 300 businesses.

Economists have suggested the recession may technically end this year, with modest growth pencilled in, as Ireland piggybacks on a global recovery. But this growth may be short-lived as spiralling public debts, shattered consumer confidence, rising unemployment and potential interest rate hikes drive the country back into recession.

The survey found that 39 per cent expected a "double dip", just ahead of 38 per cent of respondents who forecast that Ireland would escape a second recession. Almost 23 per cent were undecided.

The American Chamber of Commerce estimates that up to 40 per cent of Ireland's corporation tax comes from US subsidiaries based here, and, if the recession deepens in the US, exports from Ireland will be hit further.

The prospects for Ireland over the coming 12 months are grim according to the business elite, with only one in seven confident the economy will improve.

Brian Lenihan said last week in the Dail that "others believe in us; we must now begin to believe in ourselves", but it seems that the majority of Ireland's head honchos have long since stopped believing.

Of those polled, 43 per cent were either "negative" or "very negative" about our economic prospects, with almost as many unsure. A mere 14 per cent believed it was going to be a good year for the country and the economy, despite the tough year they had in 2009.

The threat of a "double dip" recession or "W-shaped recovery" was highlighted by top economist Nouriel Roubini, the man who predicted the financial crisis of the last three years. Along with Roubini, some economists believe global economies will decline again once the crutch of state bailouts and various stimulus packages are removed.

Report - Sunday Independent.

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

Property Crash Homes For Sale...

Hundreds of repossessed homes in Ireland to be sold by auction... UK property consultancy Allsop to hold auction in April at Dublin's Shelbourne hotel: Flats in Ireland that could have fetched €150,000 in the Celtic Tiger years are to be put on the market for as little as €25,000 (£21,000) in the country's first ever mass auction of repossessed homes. And, in a sign of how wide the property crash is, the latest item to turn up in liquidation sales in Dublin is a job lot of 15 cranes, including a pair towering over Anglo Irish Bank's half-built headquarters in the city's docklands. "Tower cranes were among the most sought-after heavy plant and machinery 10 years ago," Ricky Wilson of Wilsons Auctions says. "You couldn't buy them quick enough. Now they are left idle for two or three years on sites." He has 15 cranes worth €500,000 going on sale on 26 March, with German, Dutch and Polish buyers expressing interest. But it is the auction ...

Varadkar says it’s ‘not the worst thing’ that Ryanair is buying up homes for staff

25 of the 28 units in a new development at Fostertown Place in Swords were purchased by Ryanair for their cabin crew. TAOISEACH LEO VARADKAR says he does not have any issue with Ryanair or other companies buying up almost entire housing estates for their staff. He said there is a big difference between companies like Ryanair bulk-buying houses and apartments compared to investment funds. “We are building over 30,000 new homes now every year,” he said. “If you think about it, that’s 70,000, 80,000 or 90,000 bedrooms every year so we are finally seeing housing being built on scale,” Varadkar said. “We want to scale that up this year and next year as well because we do have a rising population and family sizes are getting smaller, so we need more housing and we are making progress,” he said. “In relation to Ryanair specifically, I don’t think it is the worst thing that a company would buy accommodation for their staff. It’s not the first time this has happened, it has be...