New report issues positive outlook for Irish economy

The Irish economy is set to rebound next year, according to an economic forecast issued today.

Ernst and Young has released its summer forecast for the eurozone, which predicts Irish GDP performance will leap from its current position of 15th this year to second in 2011.

The report predicts 2.8% GDP growth in 2011, compared to the anticipated decline of 1.1% this year and the 7.1% decline in 2009.

"Ireland's short-term economic recovery will outperform most members of the eurozone in the next 12 to 18 months," said Ernst & Young's Mike McKerr.

"Today's forecast provides further evidence that Ireland is finally turning a corner and provides reassurance that we will not experience a 'lost decade' of economic growth as many had feared."