The Central Bank has revised downward its forecast for economic growth in Ireland for the coming year.
In its latest quarterly bulletin it slashes its growth prediction by almost a quarter to reflect what it says is a less favourable international outlook.
It also warns Irish banks of the critical need to deal decisively with the mortgage arrears problem.
It also highlights a slowdown in the growth of other economies in the European Union.
It says this means less demand for Irish products.
Slowdown for trading partners
The report says that the second half of 2012 saw a slowdown in economic activity at the broader international level as well as a downward revision for growth prospects in the main trading partners of Ireland.
The Central Bank says weakening global demand has slowed Irish export growth and - given the on-going reliance on exports to offset domestic economic weakness - GDP growth has eased compared to 2011.
The Bank is cutting its GDP growth forecast for Ireland to 1.3% for 2013.
