A report from Bank of Ireland Global Markets says the Tiger economy is back, with economic growth expected to average 6% this year and next year.
In its economic outlook published today, chief economist Dr Dan McLaughlin says growth is being driven by exports and investment. He adds that inflation is likely to stay at around 2.7%.
The economist remains optimistic on the housing market, saying a booming economy, strong migrant inflows and low interest rates make a sharp correction unlikely. Dr McLaughlin also believes consumer spending, which has been lagging behind other areas of the economy, will begin to grow more strongly next year.
Also in the outlook, economist Michael Crowley says the impact from oil prices is unlikely to be dramatic. He expects a 10% fall over the next year, which could knock up to a point off the annual inflation rate.
Mr Crowley predicts that Finance Minister Brian Cowen will not raise any excise duties in the Budget, leading to a drop in inflation in December.
