Central Bank predicts subdued growth

THE Central Bank has cut its forecasts for the Irish economy this year saying rising unemployment and a weak international environment will mean that growth will be subdued.

In its latest outlook on the economy, the Central Bank says growth, in terms of gross national product (GNP), will be ahead of last year at 1.5%, but this is well below its potential and is being driven lower by the weak international picture, a rising euro and uncompetitiveness at home. An earlier forecast by the Bank put GNP at 1.75% for 2003. The gloomy report says that the recovery could be some time away and it will largely depend on what happens abroad even if domestic pressure are tackled.

The Central Bank says the persistent weakness internationally and the rising euro are leading to a “subdued performance by the domestic economy”.