Still a long road back to economic normality

The latest European Commission macro forecasts published last week showed that it expects Ireland to be the fastest growing economy in the EU this year, and again in 2015 and 2016. 

The commission expects Irish GDP to grow by 4.6% in 2014, 3.6% next year, and 3.7% in 2016.

On the other hand, it says that GDP growth in mainland Europe struggled to gain momentum in the first half of 2014, leaving the recovery there not only subdued but also fragile. As a result, the commission has downgraded its forecasts for the eurozone. It now sees the eurozone economy growing by just 0.8% in 2014 compared to 1.2% previously. It slashed its growth forecast for next year to 1.1% from 1.7% and says the risks to the economic outlook remain tilted to the downside.