Ireland's think-tank predicts strong GNP growth in 2014, 2015

Ireland's economic growth is expected to be strong in 2014 and 2015, with its gross national product (GNP) forecast to grow by about 5 percent in each year, according to the latest analysis on Wednesday.

The analysis from the Economic and Social Research Institute (ESRI), the country's leading economic policy think-tank, indicated Ireland's GNP will grown by 4.9 percent this year and 5. 2 percent next year.

Declines in unemployment are also forecast, with the headline rate envisaged to fall to 9.6 percent in 2015, according to the ESRI analysis.

"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," said ESRI economist David Duffy.

In August, ESRI predicted Ireland's GNP will grown by 3.4 percent this year and 3.7 percent next year.

GNP and GDP (gross domestic product) for most countries are at similar levels. However, Ireland is exceptional for its dependence on foreign direct investment.

In Ireland's case, for many years past, the amount belonging to persons abroad has exceeded the amount received from abroad, due mainly to the profits of foreign-owned companies, and its GNP is therefore less than its GDP.

Some economists here say GNP is the better measure of economic performance in Ireland.

"In our view, GNP continues to provide the best measure of the standard of living and output of Irish residents," Duffy said.