Consulting group PricewaterhouseCoopers says it expects Ireland's economic growth rate to be almost three times the euro zone average this year.
Its European Economic Outlook predicts that Ireland's gross domestic product will expand by 5%, compared with an average 1.75% in the euro zone.
PwC says export growth should accelerate this year, while wage growth will remain 'rapid' as skilled labour shortages become more acute.
For 2006, PwC forecasts Irish GDP growth of 4.75%, blaming the slight slowdown on an erosion of competitiveness which may dampen export growth.
The report says modest euro zone growth reflects the strong euro's effect on exports and weak domestic demand in the major economies. It expects the European Central Bank to keep interest rates on hold over the next few months.
A separate study in the report finds that euro zone economies continue to vary significantly in growth and inflation, despite having the same interest rate. It argues that the current 2% ECB rate is too high for slow growing economies such as Germany, but too low for faster growing countries like Ireland.
