Govt revises growth prospects down, and deficit prediction up
The Government last night revised downwards economic growth for the year, and upwards its expectations for the budget deficit.
The figures were revealed in a report seen by the Government yesterday, ahead of its being sent to Europe for consideration.
The Government has not yet commented on the figures, which were published on the Department of Finance website late yesterday evening.
The estimates contained in the report forecast growth at just .75% in 2011, a full percentage point lower than the growth expected at the time of the Budget in December.
The report says that debt will peak at 118% of Gross Domestic Product, lower than the 158% the IMF is predicting Greece to hit, and lower than the 120% ratings agency Moody's has forecast for Ireland.
In addition, there is an acknowledgement of the extent to which the value of domestic trade has fallen, and how dependant we have become on exports to grow the economy.
