Economics: Ireland’s central bank up its growth forecasts for 2017 and 2018

The Central Bank has raised its economic growth forecasts for this year and next, but cautioned that “Brexit” uncertainty remained a risk for the country.

In its latest Quarterly Economic Bulletin, released yesterday, the Central Bank said the economy continues to grow at a “solid” pace on the back of strong growth in full time employment, incomes and consumer spending.

To this end, it raised its GDP forecast for this year to 4.9% from 4.5% before, while it has pencilled in growth of 3.9% for 2018, up from its earlier forecast of 3.6%.

The revised GDP projections are very similar to our own.

Meanwhile, the unemployment rate is forecast to fall to 5.6% in 2018 as the country heads towards full employment.

Alan McQuaid