Economy set to surge 6% as exports drive rapid recovery

The economy will surge 6% this year and will keep growing rapidly next year too at a rate of 4.5%, while significant increases in domestic demand and for the first time in consumer spending will drive the recovery, the Economic and Social Research Institute said in its latest quarterly bulletin.

But the think tank said the forces that are driving the economy are already so powerful that the Government has no need to add to the fuel by cutting income or personal taxes in the budget next month.

The recovery is broad based and there is no reason to further pump up the economy. It forecast in June that the economy in terms of GDP would grow by 4.4% this year and next year by 3.7%.