Ireland could be in the midst of a recession, according to NCB Stockbrokers.

The current state of the economy has been described as being in "an extremely weakened position", hinting at a possible recession this year.

NCB has suggested GDP will dip by 1.6% this year, culminating in zero growth projections for next year.

Negative growth will extend to gross national product, this year and in 2009.

Difficult housing market conditions and the international 'credit crunch' have continued to send tremors through the Irish economy.

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High commodity prices and slower global growth are also cited as factors contributing to an economic recession.

NCB's quarterly economic outlook has predicted non-residential building investment will fall by 5% this year and by 12% in 2009.

This would lead to a decline in machinery and equipment sales.

Ireland's exports are still a strong pillar in the economy and could provide some support to the ailing consumer spending.

However, NCB Economist Brian Devine has said external demand could waver this year, putting export growth at risk.

Ireland is still an attractive place for investors, according to NCB, due to its young, educated population, low corporation tax and its proximity to central Europe.

(PR)