Economy to grow faster than predicted

ECONOMIC growth will be better than expected after a strong rebound in the first half of the year, the Economic and Social Research Institute said yesterday.

The Government-sponsored research body said the economy benefited from a pick-up in the key markets on which Ireland depended. It revised its GDP growth forecast for the year from 3.5% to 4.6%.

Speaking at the launch of the institute's quarterly review, ESRI economist Danny McCoy said inflation would tick up towards 2% this year and 2.3% next year as demand increased and recent hikes in the price of oil took effect.