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The Fiscal Advisory Council (FAC) has said that it is too early to determine whether additional fiscal measures will be required to meet the general government deficit target of 8.6% of GDP this year.

The council, which is made up of a variety of university economists, said in its second assessment report that the macroeconomic outlook for 2012 had weakened since the budget and that the risks deficit target are weighed to the downside.

As a result the council outlined its finding that 'this may point to the need for additional fiscal restraint during 2012, although it is too early in the year to provide a firm assessment'.

Last year the FAC recommended that the government increase the fiscal adjustment required in Budget 2012 from the planned €3.6 billion to €4.0 billion. In the end the government opted for an adjustment of €3.8 billion.

The council's report pointed to a large degree of uncertainty regarding the Irish economy saying that it would be helpful if the presentation of economic forecasts from various sources gave a greater prominence to uncertainty.

The council said that while the Department of Finance's projection of GDP growth for 2012 of 1.3% was appropriate at the time it is "now on the high side" given uncertainty in the euro zone economy and more muted domestic demand in Ireland.