Growth forecast hints at tax cuts

ECONOMIC growth will pick up over the next two years potentially allowing the Government to cut tax rates, according to the latest economic analysis by Goodbody Stockbrokers.

The report estimates that gross domestic product (GDP) grew by 5.2% in 2005, that the economy will expand by 5.9% this year and by 6.2% in 2007.

Goodbody's chief economist Dermot O'Leary, said Ireland has entered a period of domestically-led economic expansion, with consumption set to take over the growth mantle.