Prospect of Brexit sees Central Bank cut growth forecasts

Prospect of Brexit sees Central Bank cut growth forecasts

The Central Bank has cut its growth forecasts in the wake of the Brexit vote.

It has lowered Ireland's growth predictions by 0.2 percentage points for 2016 and 0.6 percentage points for 2017 in its Quarterly Bulletin No.3 2016.

GDP is now projected to grow by 4.9% this year and by 3.6% in 2017.

Chief economist Gabriel Fagan says some sectors of the Irish economy - including agriculture, clothing and tourism - depend on exports to the UK and could be hit by their decision to leave the EU.

The Central Bank forecast also states that Brexit will have both short- and long-term negative impacts.

It is projecting an increase in employment by 67,000 over the next two years, however.

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