Economy set to grow by 5%

IRELAND’S Celtic Tiger era of massive foreign direct investment is over as the economy moves into a new phase, depending more on indigenous industry and consumer spending, according to the OECD.

But the country will remain one of the EU’s strongest economies, growing by over 5% this year, in stark contrast to the rest of the eurozone members, where the outlook was described as weak and uncertain.

Growth in the zone was cut for the second time in six months and is expected to be a meagre 1.25% for the year, compared to 2% in 2004. Another hike in oil prices or further growth in the strength of the euro could sap the recovery further, the Paris-based body warned.