The Republic will remain the fastest-growing developed economy over the next 15 years, according to research by Deutsche Bank.

Between 2006 and 2020, the State will record average annual GDP growth of 3.8 per cent, significantly below the 5 per cent-plus forecast for India, Malaysia and China but ahead of the Western economies. The average for the euro zone is less than 2 per cent.

China and India will be the world's second and third largest economies by 2020, according to the research, pushing Japan into fourth place. The United States will remain the biggest economy.

India and Malaysia will overtake China to become the world's fastest-growing economies over the next 15 years, due mainly to strong population growth. Chinese growth was forecast to average 5.2 per cent, only half the 10 per cent average growth recorded over the last 20 years.

Annual population growth of 1.1 per cent, the highest among developed countries, would also pay dividends for the Irish economy, which is expected to expand by 3.8 per cent a year.

Among developed nations, Spain, with projected annual average GDP growth of 2.8 per cent, will join the Republic and the United States as the star growth performers between 2006 and 2020. - Reuters