The European Commission has said the Irish economy "appears resilient" to the recent downturn in global output, with growth forecast to remain "strong", but settling to more "sustainable" rates in 2016 and 2017.

However the commission urged caution over high private and public debt levels, and the potential impact of greater uncertainty in the world economy on Ireland.

According to the commission's Spring Economic Forecast, Ireland's economy will grow at 4.9% in 2016 and 3.7% in 2017.

Ireland continues to have the highest growth rate in the EU, with fourth quarter growth last year reaching 9.3%.

Already this year the commission talks of resilient economic activity in the first months of 2016, with the unemployment rate falling to 8.6%.

Once again growth is being driven by domestic demand with rising wages and low inflation.

There are some caveats though. 

The weakness of the global economy has, until now, left Ireland unscathed since the economy is not that exposed to those troubled markets such as China.

However, if contagion from emerging economies begins to affect Ireland's main export markets in the West then the picture could change.

Today's figures are based on an assumption that Britain remains part of the EU. Should that change, plenty of other analysts have warned of potentially dire consequences for Ireland.

There was no mention in today's forecast of the lack of a government.

The commission appears relaxed about the ongoing talks, given that several other European countries have struggled to assemble a government and economic growth has remained unaffected.