Irish Economic Contraction Likely To Continue In 2010: Moody's

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Thursday, Moody's Investors Service said it expects Ireland's economy to contract at a high single-digit rate in 2009 followed by a smaller decline next year. Unemployment is likely to peak in 2010.

The rating agency said in its annual credit analysis on Ireland that the country's 'Aa1' government ratings reflect it's very high economic resilience, which is facing its most severe test in decades.

It said in the current crisis, the Irish authorities have been proactive to the extent possible in their effort to stem the deterioration in the government's financial strength. However, the ratings carry a negative outlook.

"The country's ability to participate in a future pick-up in global economic activity -- essential for preserving its economic strength in the medium to long run -- depends on its capacity to become competitive again," said Dietmar Hornung, a Vice President-Senior Analyst in Moody's Sovereign Risk Group.

Thursday, Moody's Investors Service said it expects Ireland's economy to contract at a high single-digit rate in 2009 followed by a smaller decline next year. Unemployment is likely to peak in 2010. (Market News Provided by RTTNews)