The Irish Times has today reported that the European Commission has slightly downgraded their economic forecast for Ireland for next year to 3.6%, citing heightened risks since the British referendum on EU membership.
In their autumn economic forecast published on Wednesday, the commission says it expects the Irish economy to grow 3.6% next year, compared to a growth rate of 3.7% forecast in May.
Ireland, along with Malta, still remained the fastest growing economy in the EU with growth of 4.1% registered for this year.
The commission said that Ireland’s economic activity is expected to remain strong driven by domestic demand and job creation but it warned that “risks have heightened considerably” since the British referendum in June.
In particular, weak sterling is affecting mostly indigenous firms but it notes that this is having a “limited impact on multinationals” as exports are denominated in other currencies.
It notes that “short-run job losses in the sectors most exposed to the sterling depreciation are expected to be more than compensated by employment growth in services and construction”.
Source: www.businessworld.ie
