Central Bank governor John Hurley now expects economic growth next year to slow more sharply than the bank had previously expected.
He told the Reuters news agency he expected GDP growth of around 3%, down from 3.5% at the time of its last economic outlook.
Mr Hurley said there had been a number of developments since that forecast was published in October, including higher energy prices, a stronger euro and continued turbulence in financial markets.
But the Central Bank chief said Ireland's export and manufacturing performance remained good and it continued to attract foreign investors despite the strong euro.
He also stuck to his belief that there would be a 'soft landing' for the property market - noting that employment levels were still high and there were no problem with mortgage repayments at this stage.
As for changes to stamp duty in Brian Cowen's Budget - he believes they will improve affordability and are not likely to translate into higher prices. He said falling house prices were a 'very welcome development'.
