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.
Tesla Opens Wicklow Supercharger Station Adding Eight High-Speed Stalls
Almost a Third of Road Deaths Involve Young Drivers, Wicklow Gardaí Warn Ahead Of Bank Holiday
Garden County Housing Figures Buck National Trends
Outpouring Of Love And Tributes to Musician Glen Hansard
Wicklow Beaches To Host Kids Sea Safari Workshops In August