OECD joins EU in predicting Irish economy will contract as exports engine slows 

But Finance Minister Michael McGrath said he takes comfort from the overall outlook, which remains broadly positive

Finance Minister Michael McGrath said he was surprised that the OECD had forecast a contraction in Ireland's GDP. 

The Organisation for Economic Co-operation and Development (OECD) has become the second major forecaster in recent weeks to predict the Irish economy will contract this year, as the exports-growth engine buckles for the first time since the recovery from the financial crisis.

The Paris-based economics desk at the OECD said weakening exports growth coupled with a drop in investment will lead to GDP here contracting by 0.6% this year, and that the Irish economy remains exposed to “substantial global risks”.