Taoiseach Bertie Ahern has said that the economy will grow by 2.5% this year, a lower forecast than the Government had previously given.
He was speaking last night at the Dublin Chamber of Commerce's AGM.
The Government had been forecasting GDP growth of 3% and GNP growth of 2.8% for this year.
Mr Ahern said that despite the volatility on international financial markets and the expected slowdown in housing, Ireland could remain 'confident' about future economic prospects.
He said that 'even the most conservative commentators' were predicting a pick-up to 4% growth in the coming years.
