Stronger euro to hit exports and recovery

The economy is likely to grow at a slower pace than previously expected this year as a stronger euro curbs exports, a Reuters poll showed yesterday, in a bad omen for Government efforts to cut the budget deficit.

The weaker forecast by economists comes just a day after the long-awaited deal was sealed to ease the burden of debt Ireland took on to rescue its financial sector.

Ireland’s gross domestic product is likely to grow by 1.3% in 2013, according to 10 economists polled by Reuters, down from a forecast of 1.5% in the last poll in December.