The Central Bank has marginally downgraded its forecast for economic growth this year in its latest quarterly bulletin.
The bank predicts the economy, as measured by gross domestic product, will expand by 0.9% this year, slightly down on its 1% forecast in January. This is above a recent IMF forecast of 0.5%.
Gross national product, or GNP - which excludes profits made here but transferred abroad by multi-nationals - will be flat this year compared with 2010, the Central Bank said.
Consumer spending, which accounts for two-thirds of economic output in Ireland, is forecast to drop further in 2011 by 2.2% after a 3.4% decline last year.
The Central Bank also predicts that wages will remain under pressure with an average drop in pay of 0.3% for employees other than those in the agricultural sector.
The unemployment rate is expected to average 14.3% for the rest of the year having peaked at 14.7%, according to the latest quarterly national household statistics. The Central Bank expects employment growth to resume next year.
