Global downturn 'threatening Irish recovery'

Ernst and Young has said the economic uncertainty in other countries is threatening to derail Irish economic recovery.

The accountancy firm is upgrading its growth forecast for this year to 1.2% driven by the export market.

However, it is forecasting a fall to point 5% next year due a contraction in Ireland's main trading partners.

But growth will jump by 3.1% in 2013.

Ernst and Young Economic Advisor Neil Gibson said there will be a slowdown in demand for global exports in 2012 coupled with a further decline in domestic spending.

Mr Gibson said: "Although Ireland has done very well in terms of re-balancing of its finances and its export performance, factors outside of its control are unfortunetly casting a shadow over next year's forecast.

"The Eurozone very much still in the throws of a crisis, many of the other countries have not been able to set a path to recovery that Ireland has".

"So unfortunetly the places that Ireland is selling to are having difficulties," he added.