The Bank of Ireland has reported that the Irish economy grew by 7.8% in 2015 fuelling fears that another bubble could be forming for the Celtic Tiger that is unable to set its own interest rates and slowdown its economy.
Healthy domestic activity and export growth made the Irish economy the fastest growing in Europe for a second year running and consumer spending rose by 3.5% last year helped by employment and earnings growth and low inflation.
Meanwhile, investment was up 28.2% on the back of growth in construction, while robust export growth of 13.8% saw the country’s balance of payments reach a surplus of 4.4% of GDP for 2015.
Irish GDP increased by 2.7% in Q4 alone and consumer spending grew by 1% during the same period, the 8th consecutive quarterly rise in consumer spending.
