European Commission predicts growth, but little room for tax cuts

The Government has little room for significant tax cuts despite the European Commission projecting the economy here will grow at a healthy rate through 2018, according to analysts.

In its assessment of the Irish economy, headlined, ‘Robust growth in uncertain times’, the commission forecast GDP will grow by 3.4% this year and by 3.3% next year, despite unprecedented risks facing the economy.

The forecasts were part of its winter forecasts in which the commission said all EU economies would grow, while it separately increased its 2017 growth projection for the UK economy.