Govt expects economy to decline by less than expected
The Irish economy is expected to contract by just 1.5% next year following a decline of 7.5% in 2009.
The Finance Minister Brian Lenihan has published the Government's pre-Budget report this evening.
The 2010 forecast is an improvement from the April forecast of a contraction of almost 3%.
Unemployment is forecast to peak at an average of 13.75% next year which is lower than the 15.5% rate contained in the April Supplementary Budget.
The Finance Minister has said economic growth can return to the country in the latter half of next year - but only if December's Budget is passed.
Mr Lenihan said the improved growth forecast should not give rise to any complacency about the tough decisions which have to be taken.
The outlook will be considered by Government prior to December's crucial Budget.
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