Ireland's GDP growth will peak at 5.6% next year, according to a new report from Goodbody Stockbrokers.

The new report on the Irish economy, which is called 'Forging Ahead', was launched today.

Chief economist at Goodbody, Dermot O'Leary, predicted that Ireland's GDP growth will remain strong into 2008. He said that he expected growth of about 3.5% in 2008.

According to the report, inflation will fall back to about 3.3% in 2007. Goodbody also said that it expected interest rates to peak in early 2007.

Commenting on this week's budget, O'Leary said that the reform of stamp duty could be 'dangerous', while changes to mortgage interest relief would be less risky.