The Central Bank is predicting the economy will shrink by 0.4 per cent this year.
The figure in its latest quarterly bulletin, is in contrast with the 9 percentage point fall that was forecast in July.
It expects domestic demand to drop by just over 7 per cent, but says a strong exports market will reduce its impact.
However the Central Bank is warning some sectors will be worst affected than others.
39 Jobs To Go In Carnew As ProAmpac Plan To Move Production To Donegal
12 New Charities Registered In Wicklow Last Year As National Concerns Rise By 38%
Arklow Tesco Trials New Bulk Recycling Machine
Local TD Helps Gardaí To Remove Knife From A Distressed Man's Possession Near Leinster House
Fire Crews Successfully Battle Major Gorse Fire In Glencree National Park Overnight