EY says Ireland's recovery is not being felt in rural areas

The accounting firm expects the Republic's economy to remain strong into 2016

EY says Ireland's recovery is not being felt in rural areas

Giuseppe Milo, Flickr

EY's latest Economic Eye forecast has predicted strong economic growth in Ireland during 2015 and into 2016 - but it has warned that Ireland's recovery remains uneven.

The economy is expected to expand by 5.8% for 2015, and 4.3% in 2016 as consumption and investment levels both improve.

However it warns that rural areas are not benefiting from the upturn and that unemployment remains high in these regions.

It adds that this trend is likely to continue as urban centres bare the fruits of Ireland's recovery - attracting young graduates to these areas.

Unemployment in Dublin has continued to fall, hitting 8% during the third quarter of 2015 - while the unemployment level in the commuter belt to the east was 8.1%.

This figure rises to over 12% in the South East and Midlands.

In total the report finds that 56,000 new jobs were created across the 26 counties during 2015.

Economic Advisor to the EY Economic Eye Neil Gibson comment on the report, "Although these exceptional growth rates are unlikely to be maintained into 2016, domestic growth in the Irish economy is now matching the dynamic export sector.

"Threats from slowing global growth and risks from economic overheating are the potential challenges that lie ahead," he added.