Ireland's economic growth is expected to average 7.8 per cent in 2001 and 2002, according to the Organisation for Economic Co-operation and Development (OECD). This compares to the projected 30-nation OECD average of 2.8 per cent for real gross domestic product in 2002.

The Paris-based organisation said that after a year of particularly strong performance, economic growth in the OECD area has been weakening since the autumn of 2000.

In a report published yesterday it projected the 2001 OECD area growth rate to be half the previous year's level, falling to around 2.0 per cent.

However the forces dampening economic growth are expected to dissipate in the second half of 2001 leading to growth of 2.5-3.0 per cent over the next 12 months.