Irish economy to grow by 5 pct in 2015: OECD

The Organization for Economic Cooperation and Development (OECD) on Tuesday predicted Irish gross domestic product (GDP) to grow by 5 percent in 2015 and 4 percent in 2016.

In its latest Economic Survey of Ireland, the Paris-based think tank said the Irish economy is on a sounder footing than before the crisis.

Ireland's unemployment is falling, the fiscal deficit continues to narrow, public debt is on a downward path, the banking sector has been restructured and recapitalised and the public administration has become more efficient, according to the OECD.

Ireland's GDP grew at a rate 5.2 percent in 2014.

"Ireland is the 'comeback kid' of Europe's crisis-hit economies, and much of the credit for this strong recovery goes to the government's steadfast commitment to reform," said OECD Secretary-General Angel Gurria, while presenting the survey with Ireland's Finance Minister Michael Noonan in Dublin.

"To avoid repeating past mistakes, now is the time to build resilience against future nasty surprises while ensuring the recovery is sustained, and its benefits broadly shared," he said.

The OECD said Ireland's top priority should be further reducing the still-high levels of post-crisis unemployment, particularly for youth and the long-term unemployed. To boost skills, the government should continue with plans to improve the apprenticeship system and other forms of training.

It said additional efforts are also needed to further strengthen the banking system.

The OECD encouraged Ireland to take advantage of the strong economic recovery to accelerate the reduction of the government's deficit and put public debt, which stands at 108 percent of GDP, on a more steeply declining trend.

It also suggested Ireland enact further reforms to increase productivity, particularly among small and medium-sized enterprises (SMEs), which is the key to raising living standards over the long-term. Endit