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4.5% growth in economy forecast despite Covid damage

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Minister for Finance Paschal Donohoe will publish the Stability Programme Update later today which will set out new deficit and growth targets for the economy.

RTÉ News understands it will project growth of 4.5% in the economy this year, with a budget deficit equal to 4.7% of Gross Domestic Product, but much of this will depend on the success of the vaccination programme.

A separate measure for the domestic economy shows a lower growth rate this year but a higher rate next year. The Stability Programme Update (SPU) is required under European budgetary rules.

The Department of Finance only publishes two sets of economic forecasts every year, the one today and one at Budget time in October.

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