An ESRI report out this morning predicts stronger than expected economic growth for the rest of this year and next year.
The study by the Economic and Social Research Institute says GNP will grow by 5% a year in 2014 and 2015. They also expect unemployment rates to drop to 9.6 per cent next year.
David Duffy, ESRI report author, said: "The recovery in Ireland is broad-based and is stronger than previously thought.
"We have revised our forecasts upwards based on strong growth figures in the first half of 2014, better than expected performance in the net trade sector, a pick-up in investment levels and strong budgetary receipts.
"In our view, GNP continues to provide the best measure of the standard of living (and output) of Irish residents."
Report co-author, Kieran McQuinn (ESRI) continued: “€500 million in additional revenue is expected to be raised in 2015, with the majority arising from water charges. Under fiscal neutrality, this would be available to the government for a consumption or investment package.
"We recommend adopting an investment strategy with targets an increase in the number of social housing units. This would help to consolidate growth while also tackling one of the most pressing economic and social policy concerns at this point, namely, the supply-side of the residential property market.”
McQuinn says economic forecasts have been revised upwards since the summer:
