Irish economy to surge ‘despite risks’ from 'external factors'

Ireland’s economy will expand by 4.9% this year, the EU has predicted, a slight increase on its previous estimates, and more than double the EU average.

However, the European Commission warned that there could be risks from “external factors”, code for the effects of the UK voting to leave the EU in a referendum on June 23.

“Risks to this forecast are tilted to the downside, mainly due to external factors, to which Ireland is particularly exposed as an open economy, such as a deceleration in demand from trading partners,” the European Commission said in its spring economic forecast, yesterday.