Irish economy topping all other EU states

Performance potential
Performance potential

Ireland looks set to continue to have the fastest growing economy in the EU next year.

But Government advisers have called for reforms such as a land tax to encourage house building and meet the demand for 25,000 new homes every year.

The Economic and Social Research Institute (ESRI) predicts the strong boost to homegrown and multinational businesses and services will even out at 6.7 per cent this year before dipping back slightly to 4.8 per cent in 2016.

Seven years after collapsing into national bankruptcy the Republic is outperforming every other country in the EU.

The latest estimates include predictions that unemployment will drop below eight per cent next year and Irish-owned businesses, classed as gross national product, will soar by 5.3 per cent next year.

But the ESRI also pushed the Government on reform of tax and planning laws to kick-start house building.

Co-editor David Duffy said: “While the pace of economic growth has increased, we identify issues in the housing market and a potential significant downturn in global trade in 2016 as downside risks to our forecasts.”