The economy is set to grow by 9 per cent in 2000, having delivered growth of more than 10.5 per cent last year, well above official forecasts, according to ABN Amro Stockbrokers.

In its latest quarterly outlook, the broker says that supply is the only constraint, not demand.

Although inflation is expected to rise to an average of 3.2 per cent this year from 1.6 per cent in 1999, ABN Amro economist Dr Dan McLaughlin believes it will remain low in relative terms.