Ireland cut its growth projections by more than half after reporting weaker than expected output in the first quarter, according to a report Saturday.
The cut was expected, according to a report by the Financial Times, because the International Monetary Fund cut its growth forecasts in April. However, the revision also means that forecasts for Ireland’s ability to reduce its deficit will also have to be adjusted.
The projection adjustment comes after the country received a nearly 80 billion euro ($101.2 billion) bailout in November from the European Union and the IMF.
According to the Financial Times, Ireland cut its projections for gross domestic product from 1.75% in December to 0.75 % for 2011 and from 3.25 % to 2.5 % for 2012.
The projections come after European Commission, the European Central Bank and the IMF said April 15 that Ireland’s efforts to shore up its crippled banking sector, fix its public finances and restore the economy to sustainable growth are “on track, but challenges remain and steadfast policy implementation will be key.”
