Corrects fifth paragraph
Ireland's leading think tank upgraded its economic outlook as the economy is likely to gain strength from investment and exports.
The economy will grow 1.8 percent in 2013 instead of 1.3 percent, the Economic Social and Research Institute said in a quarterly report on Thursday. The estimate for 2014 was lifted to 2.7 percent from 2.3 percent projected in January.
Continued growth in the contribution from net exports underpin this year's expected improvement, while an increase in growth in investment and the domestic economy will also contribute next year, it said.
The institute estimates a moderate improvement in the labor market over the forecast horizon, with an expected fall in jobless rate to 14.2 percent this year and 13.9 percent next year.
The ESRI expects the government's overall fiscal target to be met in 2013 and 2014.
Further, the think tank forecast inflation to slow to 1.5 percent this year, before accelerating to a pace of 1.7 percent in 2014.
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