The Irish depression of 2009

Ireland is entering an economic depression in the first quarter of 2009 with GDP down over 10% and unemployment up 8.75% to 11%. Influential American economist Paul Krugman has stated that Ireland faces the worst economic outlook in the world. Ireland has the world's highest external debt at 811% of GDP due to excessive government borrowing and the financial bailout and nationalisation of one of Ireland's banks which were loaded with debt due to the Irish property bubble. Ireland is also very close to national bankruptcy. The Depression has social implications including: food shortages, job queues, and a collapse in government support. Protests and strikes are becoming commonplace, and fears of civil unrest are growing in Ireland due to the slide into depression.