The Central Bank has reiterated its forecast for economic growth of around 1.5% this year.
The bank had last month lowered its GNP growth forecast from 1.75%.
In its Summer Bulletin published today, the bank also says unemployment will rise to an average of 5.25% this year, and forecasts a further rise to 5.75% next year.
The report says GNP growth should pick up to 3.5% in 2004, but this is dependent on an improvement in the global economy.
The bank says domestic inflation remains uncomfortably high. It is predicting an average annual rate of 3.5% this year, falling to 2.75% next year.
