Central bank downgrades our growth forecasts
Published 29/07/2011 | 12:11
The Irish economy will grow by 0.8pc this year and not 0.9pc, as previously predicted by the Central Bank.
A new report from the bank also highlights the threat of a slowdown in the US and ongoing pressure on European markets our ability to grow the economy.
The report also warned that gross national product, which excludes output from multinationals, will fall by 0.3pc but the bank is also predicting stronger growth next year when that figure is expected to grow by 1pc.
According to the new bulletin, our two-tier economy is continuing with exports boosting growth while domestic demand is weak.
"The broad narrative behind these figures remains unchanged.
“Exports continue to grow while domestic demand remains weak, although the contraction in the latter is gradually easing," the bank said.
The bank also said unemployment numbers may have peaked.
"Reflecting the modest rate of output growth and the fact that it is driven by sectors that are not labour intensive, employment has yet to stabilise.
“It will be the end of this year or, more likely, next year before any employment growth starts to emerge.
“This largely reflects a pick-up in net outward migration, combined with lower participation," it said.