Domestic capacity constraints to restrict economic growth, Central Bank warns

The Central Bank has downgraded its growth forecasts for the Irish economy. Photograph: Alan Betson The Central Bank has downgraded its growth forecasts for the Irish economy, citing domestic capacity constraints and the impact of tighter monetary conditions in the wake of 10 consecutive interest rate hikes from the European Central Bank (ECB). In its latest quarterly economic bulletin, the bank said it expected the domestic economy as measured by modified domestic demand (MDD) to grow by 2.9 per cent this year against a forecast of 3.7 per cent as recently as June. In terms of gross domestic product (GDP),…