"Alarm bells should be ringing in every quarter of Government following the news that domestic demand has suffered a further fall and has now collapsed by a staggering 25.7% since 2008," Congress Chief Economist Paul Sweeney said today.
"Coupled with yesterday's disastrous job figures - showing the numbers in work down by 33,400 - the fall in demand is clear confirmation that austerity is squeezing life from the economy.
"The collapse in domestic demand since 2008 is truly frightening and must rank amongst the worst economic performances in Europe since the end of World War II, almost 70 years ago," Mr Sweeney said.
"Domestic demand is crucial in employment creation and retention and is also an indicator of Irish consumers' welfare. The Budget adjustment must be scaled back and accompanied by a far greater investment programme for jobs," Mr Sweeney said.
"We need an urgent focus on growth. We need to create a virtuous circle of job creation that boosts demand and break free from the current spiral of destruction."
