Noonan: 2012 growth a bit weaker than expected

Finance Minister Michael Noonan has conceded that growth in 2012 has turned out a bit weaker than forecast.

Speaking on the finance group of estimates, he said the 2012 budget had been based on a forecast of 1.3 per cent growth in gross domestic product.

"Since then, however, the indications are that growth will be a bit weaker, and most analysts have been revising downwards their forecasts over the past few months."

He said the government would publish revised forecasts at the end of this month.

The current account of the balance of payments was expected to improve further over the forecast horizon, he said.

"This is encouraging and means that the nation as a whole is paying its way."

Noonan said the Treaty on Stability, Coordination and Governance and the Fiscal Compact was key to supporting Ireland's recovery.

"We are on target with our programme and sentiment is good...yet, we can’t control world events and the world economy; markets need to know there’s a backup there in the form of the European Stability Mechanism."


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