Central Bank revises growth forecast down to 2% for 2014

Ireland’s economy is expected to grow by 2 per cent this year, the Central Bank has said.

In its latest quarterly bulletin, the bank said exports would be main driver of growth.

However, it predicted domestic demand would play a significant part in recovery as households spend more on the high street.

The bank forecast gross domestic product (GDP) would grow by 2 per cent this year, revised downwards from the 2.1 per cent in its last bulletin.

It predicted GDP growth of 3.2 per cent for 2015.

Gross National Product (GNP), which strips out the profit flows of multinationals, is expected to grow by 2.7 per cent this year, and by 2.6 per cent in 2015.

The Central Bank also forecasts a significant fall in unemployment from 13.1 per cent in 2013 to 11.3 per cent this year, followed in 2015 by a drop to 10.4 per cent.

“The global economy has strengthened driven largely by growth in advanced economies,” it said.

However, it warned that while growth in the euro area was sustained it remains weak.


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