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.
Jennifer Whitmore Reiterates Calls for Stronger Action on Puppy Farming
Illegal Dumping In Wicklow Uplands Falls Significantly Over The Last Decade
Gardaí Encourage Tradies Who've Had Tools Stolen To Get In Touch
Man Charged With Serious Firearm Offences Refused Bail at Bray District Court
Wicklow Pair Avoid Jail Over Dark Web Firearms Case