Central Bank forecasts 5.5% growth

The Central Bank has forecast that the Irish economy will grow by 5.5% this year. 

However, the bank's Governor, John Hurley, warned that a recent sharp rise in oil prices and the increase in consumers' borrowings threaten growth. 

The bank also says one of the big headaches is beginning to recede as the growth in house prices slows. 

Last year, property prices increased up to 13%, but is now at 7%. The bank hopes this will slow the recent steep growth in mortgage borrowing.

However, officials are concerned about how much money people owe financial institutions and the speed at which they are taking out loans.

The Central Bank says Ireland is now highly indebted by international standards.