Is the recession over?

THERE are grounds for a certain amount of cautious optimism about the economy in Clare according to business groups, in a week that Ireland is confirmed to have emerged from one of the steepest recessions seen in a developed country since World War II.
According to the Central Statistics Office, Gross Domestic Product increased by 2.7% in the first three months of 2010, compared to the last quarter of 2009. It was the first instance of positive growth since the end of 2007.
Rita McInerney of Ennis Chamber said things aren’t all doom and gloom in the county town at the moment, although there are serious challenges. “Certainly the climate is still very difficult out there. In tourism, there are a lot of last-minute bookings happening but people are reporting that things are steady and they’re hopeful for the rest of the season but it is difficult to judge because of the way bookings are made now with people leaving it until the last minute,” Ms McInerney said.
A number of new retail businesses have opened in Ennis over the last few weeks. Ms McInerney said there are a number of reasons why people start new businesses in difficult times. “It’s indicative of people’s attitude and positive nature. It’s happening out of necessity in some cases because people have to create jobs for themselves. Entrepreneurs often develop in recessions and people may have a bit of redundancy for a new project. Landlords might have more realistic expectations and there can be negotiations on rent. The cost of carrying out works will have dropped. While it is still a difficult environment to set up a business, there are opportunities to be cost efficient.”
She believes people are a little more inclined to spend now. “There is a little bit of consumer confidence in the psyche. The weather is helping and there is a good atmosphere in the town. It all helps in terms of attitude and that influences spending,” she said.
Helen Downes of Shannon Chamber added that while things are difficult, there is some cause for optimism. “It’s still very challenging and there will be a lot of challenges ahead. On the plus side, Analog Devices in Limerick have invested €23 million and there is a lot that can be done to boost indigenous enterprise. We hosted a seminar in Shannon on accessing EU supports and it’s good for people to know that’s available,” Ms Downes said.
She added that Shannon’s strong export base should allow it to benefit as the global economy recovers.
Eamon Kelly of the Clare County Enterprise Board noted that many people are looking at starting their own businesses, despite the difficulties. “We’ve had a very big increase in applications over the last few years. In 2008, we had 24 approved applications; in 2009 it was 39 and in the first half of this year, we had 22. We’re getting around 20 enquiries a week and they’re from all different backgrounds,” he said.
Later this week, figures will be released showing the numbers in Clare who signed on the Live Register in June. The national picture for the month saw an increase of almost 15,000 signing on, but in May, while the number signing on nationally increased, it fell by over 200 in Clare.