European Commission cuts growth forecast for next year but upbeat on performance
The EUROPEAN Commission has cut its growth forecast for next year to 1pc from 1.9pc but gives Ireland an upbeat report on its implementation of the EU/IMF/ECB bailout programme.
According to its latest assessment of the Irish economy, Ireland’s budgetary performance is on target despite a bleaker outlook due to the downturn in the world economy and higher domestic unemployment.
However, the Gross Domestic Product forecast for this year has been raised to 1.1pc from 0.6pc.
The €67.5bn bailout fund will last until the second half of 2013 because of the lower-than-expected cost of recapitalising the banks.
It also recommends that the Government should consider issuing some short-term debt soon as a first step towards re-entering the bond markets.
The third instalment of €4.2bn in European funding to Ireland is expected in January.