The economy continues to grow rapidly according to the latest Exchequer figures.

The surplus of revenue over spending was running at £1.02 billion (#1.3 billion) at the end of February from £1.89 billion at the same time last year. However, last year's figures included £1.1 billion clawback from Comsource in relation to its profits on the flotation of Eircom.

According to Mr Dermot O'Brien, chief economist at NCB Stockbrokers, the figures are in line with expectations.

Overall tax revenue was up 12 per cent with most major headings showing increases. However, excise duties were down £4 million.

Corporation tax was also running below expectations and was down 31 per cent compared to the same last year.

In contrast income tax was 12 per cent ahead, pointing to continued strong wage and employment growth. The Department predicts income tax will end the year around 8.4 per cent ahead.

VAT receipts is also up more than 14 per cent pointing to still strong consumer spending.