ESRI: Ireland to use new bailout fund

Ireland is likely to have to tap the eurozone’s new rescue fund once its troika bailout programme runs its course next year.

That is the opinion of economic think-tank, the Economic and Social Research Institute, which has also marginally reduced its growth forecast for the economy.

In its latest quarterly economic commentary, published yesterday, the ESRI said that it now expects the Irish economy to grow — in GDP terms — by just 0.6% this year, and by 2.2% in 2013. Previously, the institute had forecast GDP growth of 0.9% for this year and 2.3% next.