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.
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8:00pm - 1:00am
Relaxing favourites with Traic O'Braonain
Heavy rain shower
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Heavy rain shower
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Light rain shower
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Sunny intervals
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Heavy rain shower
High: 9°C | Low: 6°C
