Growth momentum in the Irish economy is expected to slow in the second half of this year.
A report published by the employers body IBEC estimates that shifts in global capital markets and ongoing higher prices of energy imports, are already undermining the recovery.
IBEC says leading indicators and feedback from members suggest a slowdown is already underway and is calling on the government to plan for the long-term investments needed to grow Irelands capacity and resilience in housing, energy, infrastructure and skills.
Head of National Policy & Chief Economist Gerard Brady said, while there will be a slowdown, a recession in the Irish economy is unlikely:
"I think it's unlikely that we're going to see recession in Ireland, possibly in some of our major trading partners. We've already seen pretty significant downgrades and their own expectations for growth. Two things will determine what happens one is central banks and the pace of interest rate changing. The other thing is over to the coming winter we see a lot of uncertainty about the future flows of Russian gas."
