BUDGET: Growth forecast is just 0.9pc -- EC
IRELAND'S GDP growth will next year be listed at just half of what the Government had expected when drawing up the four-year Budget plan, it has been revealed.
The European Commission's autumn forecast anticipates that growth here will be just 0.9pc and not the 1.75pc factored in by the Irish Government.
The Commission expects that income will also be lower than expected over the following years, because of lower fees from the bank guarantee scheme as the banks are restructured and a smaller dividend from state bodies after frontloading in 2011.
The State's budget deficit will not now be cut to the required 3pc until 2015, the Commission anticipates.
However, all of this was factored into the conditions of the EU/IMF loan, Economics Commissioner Olli Rehn said.
But Mr Rehn is optimistic about growth after next year and said that in 2012 growth at 1.9pc will outpace the EU average and be almost as much as that for Germany.
"Ireland has a flexible and open economy which has the capacity to rebound relatively rapidly," he said.
"The Irish are a smart, resilient and stubborn people who will overcome the challenges."
How quickly people begin spending again depends on having a viable banking sector that extends credit to the economy, the report notes.
The national debt will increase from 65pc last year to 97pc this year.And its expected to reach 114pc of GDP by 2012.