Ulster Bank has revised upwards its forecasts for Irish economic growth in 2010, because of improving exports and more consumer spending.
It also says the food and beverage sector is recovering.
An economic update from the bank says output and exports of the Irish multinational sector was a major driver of the return to positive quarterly GDP growth in the first quarter of this year.
For 2010, it predicts average annual GDP growth of 1%, up from -0.5% previously.
The bank says GNP is somewhat weaker, partly reflecting the strength of multinational company profit outflows. This has, however, been revised upwards to -0.4% from -1.2% previously.
Economist Simon Barry says recent quarters have witnessed evidence of improvement beyond the activities of multinational firms.
He said the output of 'traditional' segments of the manufacturing base, including the food sector, is now also in recovery mode.
He said consumer spending will record a positive second quarter, reflecting not just a pick-up in car sales but also that outside of motors sales volumes have managed to grow by 1.1% in each of the first two quarters of this year.
Mr Barry says risks like corrections in property markets and the public finances still exist and he is concerned about recent indications of a slowing global economy, notably in the US.
He says the unemployment rate is set to peak between 13.5% and 14% later this year, up from 12.9% in the first quarter.
