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Growth still on the up, say ESRI


Michael Noonan

Michael Noonan

Michael Noonan

THE Economic and Social Research Institute (ESRI) has forecast the economy will grow much faster this year than government estimates.

Gross Domestic Product (GDP) will surge 3pc fuelled by a recovery in spending as well as improving investment. That compares with the more conservative 2.1pc forecast from the Department of Finance.

The think-tank also forecast that unemployment would fall below 10pc by the end of next year.

And while it noted there are positive numbers coming from the Exchequer returns, it said no decision should be made on Michael Noonan's Budget adjustment until closer to October.

But it added tax hikes and spending cuts of €1bn or less could be all that is needed.