IELTS Gap-filling Listening Exercise

Economy to shrink by 9.8% - OECD June 2009 FILL IN THE GAPS WITH WORDS FROM THE LIST BELOW: contraction decline target shrink decline wages pace measure contraction spending cuts gradually forecast weak predicts projection predicted The Organisation for Economic Cooperation and Development has made a relatively pessimistic --------- for the Irish economy in its June economic outlook. According to the OECD it expects Ireland's economic output (gross domestic product or GDP) to -------- by 9.8 per cent this year compared to a -------- of 7.7 per cent -------- by the Minister for Finance Brian Lenihan in the April supplementary budget. In April the Government set a borrowing -------- of 10.75 per cent but the OECD reckons this will widen to 11.5 per cent this year and to 13.6 per cent next year. Irish unemployment is expected to rise to 12.2 per cent this year, according to the OECD and to almost 15 per cent in 2010. Inflation, as measured by the harmonised index of consumer prices, is expected to fall to -1.3 per cent this year. This --------- excludes the impact of mortgage interest repayments. "The [Irish] economy is experiencing a severe -------- as large domestic imbalances correct, compounded by the global downturn and financial crisis. With the recession already well entrenched and further --------- expected, the peak-to-trough fall in GDP is set to reach 14 per cent", it said. The OECD said Irish economic activity will recover in 2010 but at a slow ------. "With severe pressure on the public finances, it is appropriate that fiscal consolidation has begun. Substantial --------------- and increases in taxation are required in the coming years.” “Problems in the banking sector must be resolved at a reasonable cost. Competitiveness would be restored by lower---------and stronger competition," according to the OECD's summary for Ireland. For the wider group of 30 member countries the OECD said the slowdown was close to the bottom. This is the first time in two years that its outlook has improved, although it notes soaring unemployment and ballooning budget deficits could knock a -------- recovery off track. It ----------growth of 0.7 per cent for the member states next year after a 4.1 per cent fall this year, a more optimistic forecast than for Ireland. "This is the first time since 2007 that we have revised up the projection," OECD chief economist Jorgen Elmeskov said. "The bad news is that the -----------still implies that we are only nearing the bottom now and the recovery that follows is going to be a very slow one, probably a fragile one." World trade will ---------- stabilise and then slowly pick up from around the end of this year, the OECD said.