EY forecast predicts 3.7% growth

Ireland's economy is set to grow by 3.7% between this year and next, according to EY's latest Economic Eye Forecast

It is also predicting a rise in consumer spending following an increase in domestic demand this year for the first time since the recession.

GDP growth has also been revised upwards to 2% this year and a further 2.4% in 2015.

"Perhaps the most encouraging finding in the report is that recovery is based across a very wide range of sectors," said Senior Economic Advisor with EY, Neil Gibbons,

"We're seeing growth in industry, in agriculture, in the tourism industry, in ICT, in professional services - and it's that breadth of recovery that gives us confidence."

He also said the Government need to be careful where they make cuts in the next budget so as not to stunt growth, as the recovery "is very fragile in nature".