Commission prediction on budget deficit accurate, says economist

EU Commission forecasts that Irish budget deficit increases are on the way is supported by IIB Bank chief economist Austin Hughes.

Gross Domestic Product (GDP) is forecast to grow by 3.3% this year, compared to an earlier European Commission forecast of 3.5%, while the Government’s revised forecast is 3.6%.

Mr Hughes says although the commission expects things to get better in 2004, the intensity of the improvement in that year is much more modest than the commission had previously expected to materialise in 2003.