After experiencing one of the longest periods of sustained growth in its history it seems that Ireland is on the verge of a recession with reports that the economy will shrink by 0.4% during the remainder of 2008. When you consider that countries such as Ireland, which has experienced substantial growth and inward investment over the last 20 years, are on the verge of recession the signs do not bode well for the UK.

Whether the UK will actually technically enter recession will probably become apparent over the next two or three quarters because unlike Ireland, the UK is a very large economy and takes some time to change direction. However, the diminishing funds available for inward investment into the UK economy do not look good and the increased strain on the public purse is starting to tell with the voting public. The high street had a boost in May but this is likely to fall off sharply during the rest of 2008.

The UK government was recently censured by the EU parliament for teetering on the brink of breaking EU rules on financial measurements, although there was no direct response to this accusation from the UK authorities.

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