Central Bank drops economic growth forecast to 2.5%

THE Central Bank has lowered its Irish economic growth forecast for next year to just 2.5%.

In 2003, the bank says Gross National Product which excludes profits made by multinationals located in Ireland, will increase by 2.5%, much lower than the forecast of 4.25% three months ago.

Tom O'Connell, the Central Bank's head of economic research said the 2.5% estimate was "optimistic" and was prone to downside risks hinging on the performance of the US economy and recovery was being hampered by the uncertainty over war in the Middle East.