Stockbroking firm Davy has lowered its forecasts for economic growth this year by a modest amount. The revision follows the publication last month by the Central Statistics Office (CSO) of data on the most recent state of the economy.
According to Davy, gross domestic product (GDP) - the value of goods and services produced in the economy - will grow by 4.7 per cent in 2005.
Gross national product (GNP), which excludes the impact of multinational activity on the economy, is also expected to grow by 4.7 per cent.
GDP and GNP are both expected to grow by around 4 per cent over 2006 and 2007, according to the forecast.
The latest data from the CSO say that the economy grew by around 2.5 per cent in the first quarter of 2005, as a result of weak exports and in spite of strong consumption.
According to Davy, export growth will rebound while consumer spending strengthens, contributing to a recovery in growth over the remainder of the year.
However, the forecast notes the absence of data on the number of housing completions so far in 2005, and suggests that this introduces uncertainty into the forecast.
The Government is expected to revise its own forecast for economic growth next week, taking into account the latest CSO data.
According to the present Government forecasts - which underpin its budgetary plans - GDP and GNP will both grow by around five per cent over the course of this year and next.
