The latest economic outlook from Merrion Stockbrokers forecasts unemployment in Ireland will fall below 200,000 (9.3%) by the end of this year.

The unemployment rate for 2014 stood at 11.4% and the overall figure for 2015 is expected to be around 9.7%, with Merrion forecasting this figure to drop further by December.

Elsewhere, the stockbroker has left its GDP growth forecast for the year unchanged at 4.2%, however, it said based on the monthly indicators GDP growth could be “higher than our current projection and closer to 5% than 4%”.

The economic outlook also suggests more reductions in income tax in this year’s Budget, as well as “some improvement in the wages picture”.

Merrion is also forecasting house-price growth to drop from 12.9% in 2014 to 9.5% for 2015.

This is attributed to an increase in supply and the Central Bank lending restrictions taking effect on buyers.