The International Monetary Fund has downgraded its growth forecast for the Irish economy for this year and next.

The adjustment for this year is a marginal 0.1% cut to its GDP forecast to 4.9%.

Although the forecast has been cut, it still means Ireland will have strong growth this year.

However, the IMF has reduced its forecast for 2017 by 0.4% to GDP of 3.2%.

In the organisation's World Economic Outlook it highlighted the fallout from the Brexit vote.

It said: "Although the market reaction to the Brexit shock was reassuringly orderly, the ultimate impact remains unclear, as the fate of institutional and trade arrangements between the United Kingdom and the European Union is uncertain."

The IMF said it projected world economic growth to slow to 3.1% in 2016, before recovering to 3.4% in 2017.

It said the 0.1% reduction in its global forecast was caused by a more subdued outlook for advanced economies following the Brexit vote.