Davy says economic growth will fall to 2.1%

ECONOMIC growth will plunge to its lowest level since 1991 this year as the housing crisis hits the economy hard.

GNP growth will fall to 2.1% said Davy Stockbrokers in one of the most pessimistic forecasts to date.

The recent ESRI forecast is for 2.3% growth this year while the Government is working off its 3% budget estimate of December 5.