Domestic consumption to take reins of growth from exports

The Irish economy will post another year of strong growth in 2014 on the back of more robust levels of investment, combined with a recovery in domestic consumption, according to the ESRI’s spring quarterly economic commentary, which was launched yesterday.

The ESRI forecasts GNP to grow by 4.1% in 2015 and by 3.5% in 2016. GNP is considered a more accurate reflection of the domestic economy, as it strips out the effects of multinationals. GDP, which includes the effects of the multinational sector, is to grow by 4.4% this year.

Ireland was the fastest growing economy in the EU last year, with a GDP growth rate of 5.2%.