The Irish Republic's economy has fallen into recession after shrinking for a second quarter in succession.
The Central Statistics Office (CSO) said gross domestic product (GDP) had contracted by 0.5% in the three months to the end of June.
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Slowing exports curb China growth ... had shrunk by 0.3% in the first quarter of the year. Technically, a recession is defined as two or more successive quarters of negative growth.
It is the first time Ireland has experienced a recession since 1983.
House building issues
Earlier this month, the Economic and Social Research Institute predicted the Irish economy would contract by 0.4% over the year after growing by 6% last year.
Dermot O'Leary, chief economist at Goodboy Stockbrokers, said: "We have acceptance now that the economy is in recession in 2008. The issue is whether it will improve in 2009.
"One thing we know for sure is that investment spending is going to continue to act as a drag on the economy in 2009, particularly on the house building side.
"We know also that the labour market is deteriorating - so that is going to affect consumption spending. So it does not look like it is going to be a v-shaped recovery."
(BBC)
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