DUBLIN: The Central Bank of Ireland on Sunday raised its economy forecast to 4.5 percent this year and 3.6 percent next year, upwards from 3.5 percent and 3.2 percent respectively at last forecast. In its third quarterly bulletin for 2017, the central bank examines recent trends in the domestic economy and provides the Bank’s forecasts for the Irish economy and its views on domestic macroeconomic policy issues. Gabriel Fagan, the Bank’s chief economist, said the Irish economy continues to grow at a strong pace and the prospects for sustained and solid economic growth remain positive. “Revised projections for growth this year and in 2018 reflect both stronger momentum in the domestic economy and improved prospects for external demand, especially from our European trading partners,” he said.
The quarterly bulletin continues to highlight a number of risks to the downside. However, the Bank has not made any adjustments to its forecast in this regard, but cited Brexit and the sensitivity to broader international shocks as concerns. “As a small and open economy, Ireland continues to face economic risks externally,” said Fagan. “And despite there being little new information emerging to date, it is clear that the economic impact of Brexit on Ireland is set to be negative and material. At home, we must continue to prudently monitor the risk of overheating,” the Irish economist said.
