Stockbroker Goodbody has trimmed back its growth forecast for the Irish economy this year due to what it calls ‘Brexit chill’.

It said growth in core domestic demand will fall from 5% to 4.2% this year and 3.7% in 2017.

Goodbody Chief Economist Dermot O’Leary  said: “An imminent UK recession, triggered by Brexit-related uncertainty, is likely to take the gloss off a robust Irish economic performance.

“The current outlook for the Irish economy is unusually clouded,” he added.

In its assessment of the economy, Goodbody also opts for core domestic demand over GDP.

Mr O'Leary said the reason for this is that 26.3% growth figure published by the Central Statistics Office illustrates that GDP is a "flawed indicator".

He also expressed concern the growth stat would unrealistically flatter Irish Government debt ratios, risking complacency about the public finances.