Budget adjustment may be under €2bn

The Government will be able to introduce a budget adjustment lower than the planned €2bn next October if growth comes in on forecast at 2.7%, according to the ESRI in its latest quarterly economic commentary.

The think tank has forecast GDP and GNP growth of 2.7% in 2014. It forecasts GDP growth of 0.3% this year and GNP growth of 2%.

The ESRI estimates personal consumption will grow 0.3% this year and 1.5% next year; investment is seen as growing 2.1% in 2013 and 4.5% in 2014; and exports are forecast to grow 0.3% this year and 4.6% next year.