According to Goodbody Stockbrokers, Ireland is on course to be the fastest-growing economy in the euro area in 2015.

The brokerage is forecasting growth of 4 per cent in GDP terms this year, following an expected expansion of 5 per cent last year.

In its latest economic health check report, however, it warned that spending pressures in the economy were mounting due to public sector pay talks and an upcoming general election.

“It is important that sensible fiscal policy is not abandoned, undoing the hard-won gains of recent years,” it said.

Goodbody said the recovery was now being led by domestic demand, which it projected to grow by 4.1 per cent in 2015.

It also noted that investment demand would continue strongly this year with construction taking over as the main driver.

Comments are closed.