Belfast Telegraph

Ireland's Central Bank blames Brexit as it revises down growth forecast

Ireland's economy will not grow as much this year as previously forecast, the Central Bank has said.

In its latest bulletin, it predicts the economy - based on the value of all goods and services in the country, known as gross domestic product (GDP) - will grow by 3.3%.

This is down from the 3.6% growth forecast in their last report.

The Central Bank blamed Brexit in particular for the increased uncertainty over Ireland's economic outlook.

The UK's decision to leave the EU will have a negative impact in both the short-term and longer-term, it said.

It also warned there could be "bouts of heightened uncertainty" during the negotiations between London and Brussels.

However, Central Bank chief economist Gabriel Fagan said the Irish economy should continue to grow at a relatively healthy pace despite a moderate slowing down.

"Looking ahead, while the prospects for sustained, solid growth remain positive, external factors, particularly uncertainties in relation to Brexit, pose risks to the outlook," he said.

"To date, in the absence of any weakening in the UK economy, the impact of the Brexit referendum outcome on the Irish economy has mainly been felt through the volatility in the euro/sterling exchange rate."