Central Bank revises downward economic growth forecast
on 29/01/2013 11:08:35
In its latest quarterly bulletin, it slashes its growth prediction by almost a quarter to reflect what it says is a less favourable international outlook.
It also warns Irish banks of the critical need to deal decisively with the mortgage arrears problem.
The bank says the Irish economy will continue to recover this year, but at a slower pace than previously thought.
It highlights a slowdown in the growth of other EU economies meaning less demand for Irish products.
As a result, it is slashing its GDP growth forecast for Ireland by 0.4% to 1.3% this year.
GNP growth - which is often used to measure the domestic economy has also been revised down from 0.7 to 0.5%.
In its commentary, the Central Bank warns Irish financial institutions of the critical need to deal with the long term nature of the mortgage arrears problem.
It says where necessary mortgages should be restructured or resolved.