Brexit extension set to boost Irish economy - finance minister

The extension of Britain's scheduled departure from the European Union means there is likely to be some upside to neighboring Ireland's economic growth forecasts, the Irish finance minister said on Wednesday.

Ireland presented its budget for 2020 last month assuming Britain would leave the EU without a deal, a shock that would push the state's finances into deficit and cut gross domestic product growth from 5.5% this year to just 0.7% in 2020.

Minister Paschal Donohoe said Irish GDP could grow by around 3.1% next year and he could deliver a budget surplus of 0.5% if the new divorce deal Britain agreed in October is ratified after next month's snap British election.