Govt’s economic think-tank predicts 6% growth for 2005

The Government's Economic and Social Research Institute (ESRI) has predicted economic growth of 6% for this year in its latest quarterly commentary.

The body also predicted that inflation would average 2.2% for 2005, while the unemployment rate was likely to be around 4.2%.

The ESRI said the unsustainable housing market posed the biggest threat to growth, which could also be dampened by high international oil prices.