The Central Bank is revising upwards its economic growth forecasts for Ireland. In its latest Quarterly Bulletin, the bank projects the economy will grow this year by 2.1%.

This is up from its previous projection of 2% And on the back of improved conditions it predicts economic growth of 3.2% next year.

The Central Bank says Irish emergence from the bailout deal has led to an improvement in the outlook for the country. It says employment is on the increase and consumer spending is picking up.

It also expects unemployment to fall to 11.9% by the end of the year - down from an earlier forecast of 13%.

However the Central Bank says that while much has been achieved, ensuring a sustainable recovery will require further reductions in both public and private debt levels, restoring the banking system and reducing the rate of unemployment.

And it says sticking to the targets and policies set out by the troika is essential to overcome the challenges.

John Flynn is the Head of Irish Economic Analysis with the Central Bank.

Newstalk's Business Editor Ian Guider has more.