Since the inception of the global financial crisis of 2008–2009, residents of the Republic of Ireland have increasingly been cross-border shopping to Newry to buy cheaper goods due to the difference in currency. The harsh budget in the Republic of Ireland in October 2008, and the growing strength of the euro against the pound sterling and VAT reductions in the United Kingdom, compared with increases in the Republic of Ireland, are among the reasons. This remarkable increase in cross-border trade has become so widespread that it has lent its name to a general phenomenon known as the Newry effect. In December 2008, "The New York Times" described Newry as "the hottest shopping spot within the European Union's open borders, a place where consumers armed with euros enjoy a currency discount averaging 30 percent or more".