Central Bank downgrades growth outlook

The Central Bank has downgraded the growth outlook for this year and next year while calling on the Government to implement the full €3.1bn consolidation figure in the budget.

“The Government should stick to the plan of €3.1bn in as growth-friendly way as possible,” said chief economist, Lars Frisell. “The risks of a lower adjustment are not that dramatic but it boils down to investor confidence and their view of debt sustainability.”

The chief economist added that, if the Government could find a growth-friendly way of introducing a budget that exceeded the €3.1bn then it should consider this option.