ESRI expects economic growth to hit 1.8% this year, rise again in 2014

The Economic and Social Research Institute (ESRI) is predicting that economic growth is likely to hit 1.8% this year and 2.7% next year.

In its latest economic forecast, the independent body says its predictions are based on the assumption that the European economy will turn to growth next year.

The estimates are ahead of those of the government, which has previously said it expects the Irish economy to grow by 1.3% this year and 2.4% next year.

But the ESRI is warning that unemployment will remain high, with predictions the rate will drop just below 14% next year.