Central Bank cuts growth forecasts after Brexit vote

The Central Bank has revised down its growth projections for the Irish economy this year and next year on the back of Brexit.

Irish GDP growth will be 0.2 percentage points lower this year than initially thought, and 0.6 percentage points lower next year.But it is still forecasting strong growth of 4.9pc in 2016 and 3.6pc in 2017.
In its latest quarterly economic bulletin, the first since the UK referendum vote, the Central Bank said that in the short and medium term, the economic impact of Brexit on Ireland is set to be “negative and material”.But it added quantifying the effect with precision is difficult.

“Qualitatively, however, both in the short run and longer term, Brexit is likely to adversely affect the Irish economy,” the Central Bank said.
It also referred to the recent GDP data for 2015 from the CSO, which showed GDP grew by a massive 26pc last year, with the surge attributed to the activities of Ireland’s multinational sector.

The Central Bank said the National Accounts data seriously misrepresents the overall growth of domestic economic activity in Ireland.

Article Source: http://tinyurl.com/kbwqb42