Irish economy to grow more slowly due to US uncertainty - Central Bank

Robert Kelly, director of economics and statistics at the Central Bank, said it is due to the uncertainty on what the tariff rate on Irish and European exports to the US might be

The Central Bank of Ireland said changes in US policies, particularly around tax, could have a significant impact on the economy as a potentially large amount of corporation tax could be removed quite suddenly leaving a massive hole in the public finances. File photo: Leah Farrell/Rollingnews.ie

The Central Bank of Ireland has revised down growth forecasts for the domestic economy this year given the uncertainty coming out of the US and the potential impact of tariffs on Irish exports.

According to the Central Bank’s latest quarterly economic bulletin, modified domestic demand (MDD) - the preferred metric for measuring the domestic economy - is forecast to grow by 2.7% this year and 2.4% next year. This is down from the 3.1% and 2.7% growth forecasted for each of those years in the previous economic bulletin.