Goodbody cuts Irish economic forecast amid 'Brexit chill'
Published 03/08/2016 | 09:05
Goodbody Stockbrokers has downgraded its view on the potential growth of the Irish economy over the next two years amid a 'Brexit chill'.
In the firm's latest Health Check report on the Irish economy Goodbody pared back its predictions, expecting domestic demand to grow 4.2pc in 2016 and 3.7pc in 2017.
The downgrades are due to a more cautious outlook on business investment as well as a prediction that consumer spending may moderate on the back of increased uncertainty.
The stockbroker said the medium-term risks facing Ireland at the moment relate to the outcome of the UK's exit negotiations from the EU.
Goodbody analyst Dermot O'Leary said: "The latest forecasts are subject to a higher degree of uncertainty than is normal as a result of the many unknown elements of Brexit and recent revisions to the Irish macro statistics.
Ireland will be an important participant in the negotiations with the UK on its new trading arrangements with the EU in the post-Brexit world."