ESRI predicts weaker economic growth

on 31/01/2013 09:37:14

The ESRI has revised downward its forecast for economic growth this year.

It stated that weaker demand for Irish goods and services abroad will have a knock-on effect for the domestic economy.

It is still predicting GDP growth of 1.3%, but that is down 0.4 percentage points on what it had previously forecast. It has also predicted 2.3% GDP growth for 2014.

The Central Bank made a similar downgrade earlier this week.

The ESRI is endorsing the extension of the Croke Park deal which it says would help the Government to make the necessary savings.

However, the institute's economist David Duffy says the weaker growth will make it more difficult for the Government to meet the fiscal targets sent by the EU and the IMF.