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Brighter outlook from Central Bank

Central Bank - No dip in unemployment this year
Central Bank - No dip in unemployment this year

The Central Bank, in its latest report, has raised its forecasts for the Irish economy this year, though it warns that unemployment will not start falling until next year.

The Bank says a strong performance by exporters, in particular multi-national companies, has made up for continuing weakness in the domestic economy.

But it expresses concern that high debt levels in many countries and continuing worries in financial markets could slow, or even derail, the international recovery.

The bank's quarterly bulletin forecasts that the Irish economy, as measured by gross domestic product, will grow by 0.8% this year, though gross national product will fall by around 1%.

GNP excludes profits made by multi-national companies here. These forecasts are better than the bank's previous forecasts in April.

The bank is forecasting growth of 2.2% to 2.8% in both measures next year.

Meanwhile, the Department of Finance have said that the primary responsibility for job creation in the Gaeltacht should be with Enterprise Ireland and the IDA.

The recently published Government plan for capital spending until the year 2016 has also recommended this.

The Minister for Community, Equality and Gaeltacht affairs Pat Carey has stated that he believes that Údarás na Gaeltachta should retain its enterprise functions.

A spokesman for Pat Carey said that any decisions regarding the restructuring of Údarás na Gaeltachta will be outlined in the Government 20Year Strategy for the Irish Language.

The strategy is due to be published in the autumn.