Ireland forecasts 2.1% GDP growth in 2014

Ireland's gross domestic product (GDP) is expected to grow by 2.1 percent in 2014 and by 3.2 percent in 2015, the country's central bank said on Wednesday. "Taking account of the recent signs of recovery and factoring in an improvement in external demand, GDP growth of 2.1 percent is forecast for 2014," the bank said in its first quarterly bulletin of 2014. "With the impact of patent expirations in 2013 being offset in measured GNP by a reduction in associated profit outflows, the out-turn for GNP growth in 2013 is likely to be around 2.0 percent, with GNP growth of 2.2 percent forecast for this year," it added. The bank said in 2015, on the basis of consensus forecasts from the main international economic institutions projecting a recovery in external demand back to its long run trend and also supported by stronger growth in final domestic demand, GDP is forecast to grow by 3.2 percent, with GNP expected to rise by 2.5 percent. Ireland needs to "continue along the path of consolidation and reform that it has pursued for some years now to help ensure that the emerging economic recovery is sustainable," it said. Ireland has emerged from the EU/IMF bailout program against a background of increased market confidence in the outlook for the country's economic performance and policy prospects. "This has been reflected in an improvement in the market's assessment of Ireland's creditworthiness, helping the sovereign and domestic banks to regain access to market funding at increasingly more favourable rates," it said. "The key to the return of market confidence, to the extent that now exists, has been the combination of strong policy implementation over the period of the program and growing signs of gradually improving economic conditions," it added. "Particularly important has been adherence to the fiscal targets, which has brought about a reduction in the general government deficit, leaving it on track to fall below 3 percent of GDP by 2015. With the ending of the EU/IMF programe, continuing to build on the achievements of recent years will be crucial to ensuring continued access to market financing at relatively favourable rates into the future." Last month, Ireland wrapped up the bailout in a landmark for the euro zone's efforts to resolve its debt crisis. It becomes the first bailed-out country in the eurozone to officially exit its international financial rescue program. Ireland was forced to turn to the EU and the IMF for the 85-billion euro (116 billion U.S. dollars) bailout in late 2010 after its banks collapsed and its property market bubble burst.