The Irish economy has performed strongly this year, but faces “immense risks” next year from Brexit, wage pressures, and US economic policies, according to the latest Economic Outlook from Friends First.

The findings show all indicators of economic activity here have been expanding at a solid pace.

However the study suggests there has been some easing in activity since the beginning of the summer, which is evidenced in retail sales, car sales, exports to the UK and tax revenues.

Sterling weakness and the uncertainty brought on by Brexit and the US election result are also cited as having an impact.

The Friends First research highlights a number of “immense risks” to the economy next year, including Brexit, President-Elect Donald Trump’s policies, and growing wage pressures in the public sector.

Chief Economist with Friends First Jim Power said: “Ireland cannot allow the cost competitiveness of the economy and the fiscal situation be undermined at a time when the recovery is facing immense challenges, not least from Brexit.

“The global rejection of conventional politics is becoming a bigger and bigger threat to the global economy and political stability.”

On the fallout from Brexit, Mr Power said the “most obvious challenges that are presented to Ireland are for indigenous Irish exporters and tourism.

“Cross-border shopping is an immediate issue of concern. The main opportunity for Ireland would be through UK companies either re-locating or setting up branches in Ireland.”