The Central Bank says Ireland's recent burst of economic growth looks set to continue and has defended its controversial mortgage rules.
In its quarterly bulletin the bank has revised upwards its forecast for economic growth for this year.
The bank had expected GDP to expand by 4.8% this year but now says it will be 5.1%.
The figures show the Central Bank believes strong growth of recent years will continue this year.
It says growth in Ireland is also expected to be far stronger than other countries using the euro.
It says expansion in employment of 2% per annum since 2012 has been driving the improved conditions.
It added that future economic expansion will be powered by consumer spending and investment.
However, the Central Bank has marginally revised downwards its forecast for 2017 by 0.2% to 4.2% in terms of GDP.
In an interview with RTÉ News the bank's chief economist Gabriel Fagan also said the new mortgage rules will be a permanent feature of the market.
Mr Fagan said while the rules were being reviewed this year the threshold of evidence to make changes would be high.
He stressed that the restrictions were in place to promote financial stability and avoid another crisis.
