The economy is expected to grow by 4% in 2015, while unemployment is to fall to 8.4% next year according to the latest ESRI quarterly forecast.

They are also estimating growth of 3.5% next year.

While the number of homeowners in negative equity is expected to fall to around 160,000 by the end of 2015.

Associate research professor with the ESRI Kieran McQuinn explains where the growth is coming from.

QEC co-author, David Duffy continued: "We expect that the domestic economy will make a major contribution to growth in 2015 and 2016."

"Having updated our estimates we now expect the numbers of homeowners in negative equity to fall to approximately 160,000 by the end of this year and could fall to below 100,000 by the end of 2016."

He spoke to Newstalk Breakfast this morning.