Rating agency Standard & Poor's has said that Budget 2016 will not overheat the Irish economy.

In a report today, S&P's said that while this week's "pre-election budget" was expansionary, it was unlikely to derail fiscal consolidation. 

S&P examined the current state of the economy and what the recent budget announcements mean for the country's fiscal and debt outlooks. 

"We believe much of Ireland's strong growth in the past few years has stemmed  from the economy rebounding from a deep financial crisis. We only expect nominal GDP, in euro terms, to return to the 2007 pre-crisis peak this year," the rating agency said.

We do not expect the Government's pre-election giveaways to derail its planned fiscal consolidation," S&P's added

"The expansionary measures announced so far are within our current base case, and the extra spending on health should cover at least  part of the recurrent overruns in the sector," it stated.