EU revises Ireland's growth estimate upwards

The European Commission has predicted that Ireland's GDP will rise 3% in 2011, the second-highest rate of any country in the eurozone.

The Commission's spring forecast also confirmed that the economic recovery is in progress in the EU.

After having experienced the deepest recession in its history, the EU economy is set to grow by 1% in 2010 and 1¾% in 2011.

This implies an upward revision of ¼% for this year from the Commission's autumn forecast, as the EU countries benefit from a stronger external environment.

The eurozone unemployment rate projected to peak this year at a lower level than forecast earlier, yet at close to 10% in the EU.

EU Commissioner for Economic and Monetary Affairs Olli Rehn said: "The improved outlook for economic growth this year is good news for Europe.

"We must now ensure that growth will not be derailed by risks related to financial stability.

"Sustainable growth calls for determined fiscal consolidation efforts and reforms that enhance productivity and employment."