The EU Commission has forecast that the Irish economy will grow by 3% next year.

This is one of the highest levels of growth forecast in this morning's figures from the Commission.

At 3% predicted growth, Ireland is alongside other countries that experienced massive falls in recent years, like Estonia, Latvia and Lithuania.

However, the Commission says the economy will fall by 0.9% this year. This again is an upward revision from a previous forecast for a 1.4% fall.

Its figures say the economy in Ireland declined by 7.1% last year; it predicted it would fall by 7.5%.

The eurozone economy as a whole is set to grow by 0.9% this year, faster than previously thought, the EU Commission said today, but debt-laden Greece's economy is set to contract by 3%.

It seems that every time a new forecast comes out, we are predicted to do a little better. Now, I know that should never have gotten into the situation that we are in but given the current situation:

Is this good news?
Are these forecasts a result of action that Ireland is taking?
If not, why are we seeing these improvements?