Ireland could slide into a 'technical recession' with the Central Bank warning of a 'considerable slowdown' in the economy.
In its latest quarterly economic bulletin it's cutting its growth forecast for the rest of the year and says inflation driven by high energy costs its fuelling uncertainty.
Average household incomes are forecast to fall by 3.3% this year and remain flat into next year.
Director of Economics and Statistics with the Central Bank Robert Kelly says there are also many positives.
"Since our last forecast recent developments in the supply of gas has markets expecting higher prices over the coming year.
"At the same time the demand for labour remains high, with three people seeking work for each vacancy available.
"If we compare this to directly before the pandemic, this number was 6 to 1."
