Growth of 4% expected this year, while unemployment falls to 9.7%

The economy is expected to grow by 4% this year, while unemployment is to fall to 9.7% this year, and 8.4% next year.

The findings are contained in the ESRI's latest quarterly forecast, which is also estimating growth of 3.5% in 2016.

It says the number of homeowners in negative equity is expected to fall to around 160,000 by the end of this year.

Associate research professor with the ESRI Kieran McQuinn said: "We see continued strong performance by Irish exporting firms and we see the international market for Irish goods and services having a positive outlook.

"We also see quite a degree of growth coming from domestic sources…and that consumption is beginning to grow."