The Taoiseach has said that growth in Ireland will still be one of the best in Europe this year - despite a cut in forecasts.
The mid-year assessment from the Department of Finance this evening is predicting overall growth of just 0.7%, with GNP continuing to contract.
It is also forecasting that the unemployment rate will continue in double figures into 2015.
Some economists say the sluggish growth means we are more likely to need a second bailout.
However Enda Kenny says the economy is still doing reasonably well - and we should be able to exit the Troika programme as planned:
"The Irish growth figures are very much more progressive than most of the eurozone countries for 2012 and 2013", he said.
"…that's why we want to keep the level of confidence of investment into the country very strong, which when we progress our own action plan on jobs to improve the environment where jobs and employment will be created here will add to our potential to grow".