The Central Bank has upgraded its growth forecast for 2015 to 5.8% of GDP.

That represents an increase of 1.7% on its previous estimates.

Publishing its quarterly economic outlook, the Central Bank said the recovery had become widespread throughout the economy and had matured beyond the initial export-driven rebound.

The outlook said consumer spending has revived and is now playing a more prominent role in the recovery.

The Central Bank also upgraded its outlook for 2016 to a predicted growth rate of 4.7% of GDP, on the back of strengthening domestic demand, which it foresees continuing into next year.

This represents a 0.5% improvement on its previous estimate.

It expects government debt to fall more sharply than previously expected this year and next.

The Bank is advising the Government to take advantage of the favourable conditions to make progress on fiscal consolidation and debt reduction.

It highlights the danger of using windfall fiscal gains to finance long-lasting spending commitments.

The Central Bank has also said there is no need for a fiscal stimulus as the economy is growing robustly at present.

The Bank has urged the Government to use spare capacity to reduce the national debt, which it forecasts will fall to 100% of GDP by the end of the year.

It largely reflects the advice of the ESRI, which said in recent days there was no need for an expansionary budget in the coming weeks.

The Central Bank's Chief Economist Gabriel Fagan said it was not arguing that an expansionary budget would cause damage to the economy and he acknowledged that the figure outlined in the Spring Economic Statement of €1.2bn to €1.5bn was small as a percentage of GDP.

However, he argued public finances were still vulnerable to shock and that advantage should be taken of the current growth environment to do whatever can be done to further improve the fiscal situation.

He advised a move away from the pro-cyclical policies of the past and to allow some expansionary leeway in difficult times should the economy run into trouble in the future.