EY lowers its forecasts for Irish GDP growth

The consultancy firm, EY, has downgraded its growth forecasts for the Irish economy on a weaker than expected global recovery.

However, there are signs that the labour market is recovering and stronger domestic demand will compensate for the drop-off in exports, it added.

The firm has lowered its Irish GDP growth forecasts from 0.8% to a contraction of -0.2% for this year on the basis of much weaker than expected growth over the first quarter of the year.