Experts cut economic growth forecasts

IRELAND’S business leaders and key economists believe the economy will grow this year and next, but at a slightly slower pace than earlier forecasts.

This coincides with the thinking of Finance Minister Michael Noonan, who yesterday said Irish growth forecasts have had to be reduced, but were still positive for next year because of the country’s export-driven economy.

The Department of Finance will deliver fresh forecasts today, which Mr Noonan said will show how the Government will reduce the budget deficit to a rate of under 3% of GDP by 2015. Mr Noonan said the data should help restore consumer and business confidence to enable them to spend to boost the domestic economy.