Economy to grow at a slower but healthy pace, says Bank of Ireland

In its economic forecast, the bank said it expects inflation to average 2.3% this year before easing back to 2% in 2025 and 2026

The bank aid the reduction was due to artificial measurement distortions related to the multinational sector, rather than a material slowdown. File picture: Denis Minihane

Bank of Ireland has revised down its GDP forecast for the Irish economy on the contraction of contract manufacturing by multinationals but has revised up its forecast for growth in consumer spending and employment.

The bank expects GDP growth of 1% this year, down from 1.5% forecast in February. Bank of Ireland's Chief Economist Conal Mac Coille said the reduction was due to artificial measurement distortions related to the multinational sector, rather than a material slowdown.