Thursday 20 October 2016

Irish growth downgraded by Central Bank in wake of Brexit referendum

Published 06/10/2016 | 11:42

The Central Bank headquarters in Dublin
The Central Bank headquarters in Dublin

The Central Bank has downgraded Irish growth slightly for this year because of a slowdown internationally.

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GDP is expected to increase by 4.5pc this year, 0.4 percentage points slower than previously expected.

The projection for 2017 remains unchanged at 3.6pc from the Central Bank's last forecast in the wake of the Brexit referendum.

Central Bank chief economist Gabriel Fagan said the forecast presents a relatively favourable outcome for the economy, despite the Brexit vote. 

But he added the risks to the forecasts are heightened because of the referendum.

He said the economy remains vulnerable, as public and private debt remain high.

Mr Fagan said a prudent fiscal policy is required and that European budgetary rules must be adhered to.

He also said that the Government should stick to its plan to reach a balanced budget, and to build up a rainy day fund.

And in the long term, the Government should establish long term debt targets, Mr Fagan added.

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