The Economic and Social Research Institute predicts that the economy will continue to perform very well for the foreseeable future despite concerns over a sharp rise in oil prices and continued economic weakness in Europe.
In its latest commentary, the ESRI says the strong house-building sector is helping and that Irish consumers are currently spending €100 million more per week than last year.
The housing boom and strong consumer spending this year and next are two of the key reasons why Ireland is doing so much better than continental European economies.
The institute does warn, however, that the house-building boom is unsustainable and that this is a considerable risk for the economy in the medium term.
They want to see more competition and lower inflation in our services sector so that the economy can continue to stay competitive.
