Boosted by a weak euro, Irish exports are expected to grow by 16 per cent in 1999, while growth in GDP is expected to be 10.2 per cent - higher than previous forecasts - according to the Ulster Banks Quarterly Outlook published yesterday.

"Despite the perceived embarrassment of ECB and eurozone politicians concerning euro depreciation, a weaker euro is in the best interests of the euro zone economy as it boosts exports and growth," according to Mr Aziz McMahon, treasury economist at Ulster Bank Markets.

"Euro weakness should not be a matter of concern for the ECB as long as movements are determined by fundamentals and not by credibility concerns. Unfortunately, eurozone monetary officials and politicians contributed to the weaker euro not on the basis of simple economic principles but due to their often-conflicting comments and the lack of a clear monetary policy line."

The report says that Irish export growth is a result of a combination of recovery in the economies of our trading partners, the competitive advantage given by a weaker euro and very strong demand in our third largest export market, the USA.

According to Mr Aziz: "Government revenue forecasts have consistently underestimated the final outcome and with growth in 1999 revenue to date surpassing the government forecast by a factor of three this year looks set to be no different."