Another economic report has lowered the outlook for growth in the Irish economy this year.
Bloxham economist Alan McQuaid said the economy - as measured by gross domestic product - was likely to grow by no more than 1% this year, down from his previous forecast of 1.4%.
The economist said sorting out the banking sector was far more important for the new government that securing a lower interest rate on the EU/IMF bail-out.
In his quarterly economic outlook, he said there was still a two-speed economy, with exports doing very well, but the domestic economy struggling due to high levels of personal debt, higher taxes and rising food and energy prices.
Mr McQuaid said the trade surplus was likely to hit a record €50 billion this year, but consumer spending was likely to be subdued for the fourth year running.
The economist said further job losses in the construction, financial and retail sectors looked inevitable in the coming months, but higher emigration would keep the unemployment rate below 15% this year.
He predicted that tax revenue could be up to €1 billion below Budget forecasts this year.
Earlier this week, a report from Davy also lowered its growth forecast for this year.
