Ireland's central bank on Friday said that economic growth will likely accelerate at a slightly slower rate in 2013 than estimated earlier, citing a potential slowdown in export growth due to weaker external demand.

In its quarterly bulletin, the central bank said gross domestic product is set to grow 1.2 percent in 2013, slightly slower than the 1.3 percent growth estimated earlier. The projected growth rate is, however, faster than 0.9 percent recorded for 2012.

The downward revision reflects a less positive outlook for external demand and a consequent downward revision to export growth, which is currently estimated to expand at a slower rate of 2.5 percent this year than indicated in the previous bulletin, shipments are forecast to grow by 5 percent.

"Looking ahead, with growth in trading partner countries expected to slow a little more than previously assumed, weaker external demand is set to dampen Irish export growth this year as compared to the previous forecast."

In 2014, economic growth is forecast to improve further to 2.5 percent, which is in line with the previous estimate, as external demand is seen recovering back towards its long run trend.

Ireland's Gross National Product is expected to grow 0.6 percent this year and 1.6 percent the next year, after growing 3.4 percent in 2012, the central bank said.

RTTNews