Merrion projects house prices to rise through 2016

House prices are likely to rise again rapidly as the economy posts another set of strong economic growth numbers through 2016, a major stockbroking firm has predicted.

Merrion Capital is the latest forecaster to project that recent tailwinds driving exceptionally rapid recovery in Ireland will extend though next year, despite the troubles emerging in China.

It says that GDP will surge by 6% this year and continue to grow, by 5% in 2016, while unemployment will fall next year to an average rate of 8.8% from 9.6% in 2015.