The Central Bank of Ireland has signalled a marked slowdown in economic growth here next year, suggesting the economy will expand by 3 per cent rather than 4.25 per cent.
The weak international growth prospects are the principal reason for its downgrade although it has also warned about the further erosion of Ireland's competitiveness caused by stubbornly high rates of inflation.
Presenting its Winter Bulletin yesterday, Dr Michael Casey, assistant director general of the Central Bank, said that, while Irish growth rates had slipped, the economy was still performing well and should once again experience economic growth rates of up to 5 per cent.
“There is no reason why we will not get back to our long-term potential of 4 to 5 per cent in due course,” Dr Casey said.
