In its Winter Economic Commentary this morning, the Economic and Social Research Institute (ESRI) has retained its positive stance on the Irish economy, pushing through a modest upgrade to its projections for 2018.
GDP growth of 4.2% is expected next year (up from 4.0% previously). This follows anticipated growth of 5.0% this year. Ireland is expected to remain as one of the fastest growing economies in the EU.
The ERSI is now expecting a budget surplus of 0.2% of GDP in 2018. Such an outcome would be the first since 2007.
The forecast change is due to stronger tax revenues and tighter control of public spending recently. Secondly, the ESRI is of the view that full employment will be hit in Ireland by the end of next year.
According to Goodbody Stockbrokers, "It should be no great surprise that there are only minor tweaks in the ESRI’s latest forecasts. We will be reassessing our own forecasts at that time, but are in general agreement with the positive prognosis for the coming twelve months."