This followed growth of -1.3% in Q1 2008, and two successive quarters of negative growth is the technical definition of a recession.
Estate agents in Dublin say the city has a three-year oversupply of homes and with mortgage finance as constrained as it is in the UK, consumers aren’t buying.
In an attempt to kick-start the market, two of Ireland’s largest property developers are offering interest-free loans to buyers unable to raise the deposits they need to buy homes.
Radora is offering loans of up to 30% of selling prices while Glenkerrin Homes is offering interest-free loans for up to seven years.
Ireland was last in recession in 1983.