Down from previous forecast of +0.8%. 2010 GNP seen -1.7%, down from previous forecast of -1.0%

GDP forecast of +0.2% compares with government forecast of 1%.

  • Sees 2011 GDP at 2.4%, GNP at 1.7%; but risks tilted to downside
  • 2011 budget must deminstrate the first step of a tighter fiscal plan
  • Ireland’s underlying deficit likely to be around 11.6% of GDP in 2011
  • Further progress needed in establisihing Irish banking system on a sound footing
  • Sees 2010 CPI -0.9% versus previous forecast -1.2%
  • Risks to ECB staff growth forecasts slightly tilted to downside, especially in 2011
  • Global economy and fiscal adjustment main risks to ECB growth forecasts
  • Risks to ECB inflation forecasts slightly to upside due to tax rises, commodities
  • Developments in recent months suggest global economic uncertainty has increased
  • Euro area growth rate expected to be moderate in H2