Dublin - A Dublin-based think tank issued its gloomiest outlook yet for the Irish economy Friday, forecasting a drop in economic activity of 4.6 per cent in 2009 and a jump in unemployment to almost 10 per cent.
"The Irish economy is in the midst of a contraction that is large by both historic and international comparisons," the Economic and Social Research Institute (ESRI) said in a statement.
Ireland's gross national product, which does not include net investment from abroad, is expected to fall by 2.6 per cent this year before slumping by 4.6 per cent next year.
Investment in Ireland would drop by 19.3 per cent in 2009, the ESRI forecast, while consumption would drop 3.6 per cent.