European Commission cuts growth forecasts for Ireland
THE European Commission has cut its growth forecast for Ireland in 2012 – to 0.4pc from 0.5pc previously.
The Commission added that the country's risks remained broadly balanced.
"Downside risks stem from the uncertain external outlook, especially trading partner demand, although the Irish export sector decoupled successfully during the first years of the crisis," it said today.
According to the Commission, expiring patents could mean a reduction in chemical exports.
It also warned that consumer spending could be hit if house prices fall further.
The Commission also cut its GDP forecast for Ireland for 2013 – it’s third downward revision in six months.
It is now predicting a rate of 1.1pc compared to earlier forecasts of 1.4pc.
This rate matches that of the IMF.
However, the Commission believes growth will accelerate to 2.2pc in 2014, putting our growth figures higher than that of Germany.
The Government has predicted a rate of 3pc for 2014.