The Central Bank has revised upwards its growth forecast for 2014 due to strong performance in the export sector as well as a stabilisation in domestic demand.

The authority now predicts GDP growth of 2.5% this year, 0.5% higher than previously forecast.

It has also revised upwards its figures for 2013, saying the country’s GDP grew by 0.2% last year as opposed to a previously-suggested contraction of 0.3%.

In its latest Quarterly Bulletin, the Central Bank said the economic recovery was showing “a somewhat stronger trend overall than previously signalled by national income and expenditure data”.

The authority said exports had rebounded well since late 2013, which suggests that the impact of the pharmaceutical patent cliff may be easing.

On the domestic side, it said improvements in employment numbers should help to boost household incomes, which will in turn improve consumer confidence and spending.