Davy revises growth forecast down

A group of stockbrokers has revised downwards its growth forecast for the Irish economy this year.

Davy has released a report saying it now expects Irish GDP to grow by 1.1% this year, down from 1.6%.

Its prediction for next year's growth is also down to 1.7%, where it was previously expected to be around 2.4%.

The company's report says weaker demand for Irish exports is a key factor behind the decision, while consumers have also increased their savings, pushing down spending.

Davy's chief economist Conal McCoille said: "The potential for a more severe global downturn poses significant downside risks...We need to bring the pain up front and try to give people more conficence."