The economy is set to emerge from recession, figures to be published later today are expected to show.

Gross Domestic Product (GDP) for the second quarter of the year is expected to have risen slightly from the previous three months. The figures will be released mid morning by Central Statistics Office.

Ireland fell back into recession late last year and early in 2013 because of weak exports and a still-declining domestic economy. It was the second time in five years that Ireland swung into recession.

While exports are still sluggish, due to falling pharmaceutical sales, the economy may have benefitted from a slight pick up in domestic demand.

Prospect of Easier Budget

Today's data is one of the last remaining pieces of the jigsaw as the government prepares October's budget. Tax and spending receipts for this month, due in early October, will also provide finance minister Michael Noonan with a clearer picture of the economy.

If all of those numbers are pointing in the right direction it may give Minister Noonan leeway to ease off on austerity. Under the bailout agreement with the IMF, the European Central Bank and the European Commission, Ireland must cut €3.1 billion out of the economy to reduce the budget deficit.

An improving economy, along with demands from the Labour party to scale down the cuts, could convince Minister Noonan to go with fewer tax rises and spending reductions and still hit our target of getting the deficit down to about 5.1%.

Since the second quarter ended in June, unemployment, consumer confidence and various sectors of the economy from manufacturing to tourism have performed better.

But some economists, including those at the influential think tank the Economic & Social Research Institute, have urged the coalition to press ahead with the original budget plan to ensure October is the last of austerity.