The Irish economy is to continue to enjoy strong growth over the next 18 months, according to the Economic and Social Research Institute.
In its latest Quarterly Economic Commentary, the ESRI says Ireland's gross domestic product will grow by 4.4% this year and 3.7% in 2016.
This is on par with predictions the institute made in March of this year, and ahead of forecasts from the Government, Central Bank and European Commission.
The institute also expects the unemployment situation to improve further, with unemployment to fall to 9.7% this year and 8.4% in 2016.
The ESRI says despite sluggishness internationally, the Irish economy should continue to recover.
This is due to an improvement in the domestic economy, which it says will make a major contribution to growth in the coming year and a half.
However, the ESRI has warned that the Government should not "loosen the purse strings" too much when it comes to this year's Budget.
Speaking on RTÉ’s Morning Ireland, Kieran McQuinn, Associate Research Professor with the ESRI, said that if the predictions come true, Ireland will have the strongest growing economy in Europe.
He said in this situation the Government should avoid seeking to further stimulate the economy.
"If you think the economy is doing very, very well, which we think it will over the next few years, then there isn't really a need for the Government to get involved and to seek to stimulate the economy.
"The more advisable course of action is certainly in the short term to let things be as they are, to follow a neutral strategy and that should over the longer period of time ensure that we have more stable public finances and a more sustainable set of fiscal objectives."
