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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Top Stories Most Popular Photos Full Coverage Sitemap Irish economy grows again in third quarter AFP - Friday, December 17 Send IM Story Print Irish economy grows again in third quarter DUBLIN (AFP) - – Ireland's indebted economy grew by 0.5 percent in the third quarter, thanks to robust exports, after shrinking by 1.0 percent in the previous three months, official data showed on Thursday. "Initial estimates for the third quarter of 2010 indicate ... growth rates of 0.5 percent," the Central Statistics Office said in a statement. It added that the small eurozone nation's gross domestic product (GDP) fell by 1.0 percent in the second quarter, or April-June period, after revising its initial estimate of minus 1.2 percent. Finance Minister Brian Lenihan said that the return to growth in July-September showed that "the economy is growing, primarily due to the very strong performance of the export sector." However, GDP fell 0.5 percent in the third quarter compared with the equivalent period in 2009. Lenihan said the year-on-year growth rate would "likely turn positive during the final quarter of 2010 or early in the new year. "Today's figures show that the economy has stabilised and is now on an export-led growth path," he said. "The budget day forecast for economic growth of 1.7 percent in 2011, which is in line with the consensus forecast, remains on track." Thursday's data came one day after Ireland's parliament voted narrowly in favour of an 85-billion-euro bailout by the EU and IMF, and as fears intensified about possible contagion from the eurozone debt crisis. The Dail, or lower house of parliament, voted by 81 to 75 to approve the bailout worth 113 billion dollars after Lenihan had said it was the only basis for recovery of the battered Irish economy. "The small rise in Irish GDP in the third quarter is clearly encouraging but it does not alter our underlying view that the government faces an enormous task to reduce public debt to a sustainable level without defaulting," said Ben May, European economist at the Capital Economics research group. An opinion poll published Thursday showed the popularity of Prime Minister Brian Cowen and his ruling party has been hammered by the fallout from the country's financial crisis. The poll ratings for Cowen, his government and his centrist Fianna Fail party in the Irish Times/IPSOS MRBI poll all dropped to record lows since MRBI began polling for the newspaper in 1982. The setback comes as Cowen and his Fianna Fail/Green party coalition face a general election early next year after all parliamentary votes have been completed for an austerity budget that has slashed spending and raised taxes. Ireland, rocked by bank bailouts, a property market meltdown and recession-ravaged tax revenues, unveiled plans last month to slash a huge deficit and save 15 billion euros by 2014. Ireland's international bailout, just seven months after a similar rescue of Greece, comes amid heightened tensions over the eurozone debt crisis. Moody's rating agency shocked financial markets on Wednesday as it placed Spain on review for a possible downgrade, blaming the nation's stretched finances and banking problems. European Union leaders hold a crucial summit on Thursday and Friday in Brussels where they will try to hammer out proposals for a permanent rescue mechanism for debt-ridden nations. Ireland was the first eurozone member country to plunge into recession, in the first half of 2008 and has struggled ever since. Recommend Send IM Story Print News Search Top Stories Europe paves way for lasting euro lifeline Science of man-made life can proceed: US panel IMF approves 22.5 bln dollar loan for Ireland EU leaders agree treaty change to set up rescue fund US authorities nab five in insider-trading probe More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended US man is HIV-free after stem cell transplant Record profits forecast for airline industry Scarlett Johansson, Ryan Reynolds call it quits US sues BP, eight others over Gulf oil spill Suicide bomber kills 33 at Iran procession More Most Viewed » NASA finds new form of life... on Earth Defiant Obama defends tax cuts, eyes 2012 More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! 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