Irish echo logo 750x550

Irish growth heading down

Ireland's Central Bank has lowered its economic forecast for this year and is predicting that the Republic's economy will grow by just 0.8 per cent.

That's a tenth of a percent less than an April prediction that pegged 2011 growth at an anemic 0.9 percent.

The Central Bank has also warned that gross national product - which excludes repatriated profits of multinational firms - may decline by about 0.3 percent this year.

Sign up to The Irish Echo Newsletter

Sign up today to get daily, up-to-date news and views from Irish America.

"However, it predicted stronger growth in 2012, with gross domestic product expected to expand by 2.1 percent and a rise of 1 percent in GNP," the Irish Times reported.

The bank took the view that unemployment in the Republic may have peaked, but this largely reflected "a pick-up in net outward migration."