Irish GDP is expected to grow by 5.25% and GNP is expected to grow by 5.75% in 2006

Jodie Ginsberg:

Ireland increased its 2006 economic growth estimates on Thursday but Finance Minister Brian Cowen promised a "responsible" budget despite a further cut to his expected borrowing needs thanks to a surging tax take.

Gross domestic product (GDP) growth is seen at 5.25 percent this year and gross national product (GNP) is expected to rise 5.75 percent, the Department of Finance said in its Pre-Budget Outlook, which gives forecasts for 2006-8.

Irish Prime Minister Bertie Ahern said earlier this year GDP was expected to rise by around 4.8 percent in 2006 versus 5.5 percent in 2005. The Central Bank's most recent estimate is for 5.25 percent growth in GDP and 5.5 percent for GNP.

The latest Reuters poll of Irish economists saw GDP growing 5.5 percent this year, with GNP seen up 5.8 percent.

The Department of Finance said that for the period 2006 to 2008, it expected GDP and GNP to expand by 5 percent a year.

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