Ireland’s economy grew by 4.8 per cent last year, likely the fastest rate in the European Union, after eking out growth of 0.2 per cent on a quarterly basis in the final three months of the year.

After exiting an international bailout at the end of 2013, the economy surged in the first six months of the year and fourth quarter growth was lower than the one per cent rise in gross domestic product (GDP) forecast by economists polled by Reuters.

But for 2014 as a whole, Ireland’s economy grew almost four times as quickly as the average 1.3 per cent GDP rate posted across the EU after most countries had published their fourth quarter data.

The government had forecast GDP growth of 4.7 per cent in October when publishing its budget for 2015 which is mainly reliant on economic growth cutting Ireland’s budget deficit below the EU limit of three per cent of GDP by the end of the year.

The economy is forecast to be the fastest-growing in Europe again this year and strong momentum has been maintained in 2015 with growth set to be less reliant on exports as unemployment falls, tax receipts soar and retail sales rise sharply.

In the fourth quarter, personal consumption rose 1.3 per cent quarter-on-quarter compared to a 1.2 per cent increase in exports.