The Government's economic forecast for 2008 has not changed, despite the Taoiseach warning during a speech on Thursday that the economy would grow by about 2.5 per cent this year, below the Government's previous projection. Simon Carswelland Barry Rochereport.

Minister for Finance Brian Cowen forecast GDP growth of 3 per cent and 2.8 per cent growth in GNP for 2008 when he published the Finance Bill on January 31st. A spokesman for the Department of Finance reiterated this view yesterday, saying: "We are not changing our forecasts."

Speaking in Cork yesterday, Taoiseach Bertie Ahern played down any major difference between himself and Mr Cowen. Mr Ahern insisted that both Mr Cowen's figure of 2.8 per cent and his own figure of 2.5 per cent were within a generally accepted range of likely growth this year.

"At Budget time, we said 2.8 per cent, the Central Bank this week said 2.6 per cent and I said around 2.5 per cent - most economic commentators are saying between 2 and 4 [ per cent] so you can pick your number. The official estimate of the department hasn't changed - that's still 2.8 per cent," said Mr Ahern.

A spokesman for the Department of Finance said Mr Ahern had been "talking in approximate terms" when he gave a growth forecast of 2.5 per cent during his speech on Thursday night. A spokesman for the Taoiseach said Mr Ahern had provided "a round-up, round-down figure".

Reuters reported Mr Ahern's comments on its wire news service, stating that "Ireland's economic growth is set to halve this year to about 2.5 per cent".

Most economic commentators have downgraded forecasts in recent months as economic conditions have steadily worsened.

Mr Ahern said yesterday that if growth could be maintained at 2-4 per cent, it would be a good return for the economy in 2008.