Employers group Ibec has predicted that up to 50,000 new jobs will be created in Ireland this year.
Last year saw the strongest growth in employment since 2007 and Ibec sees this continuing across this year.
In its Quarterly Economic Outlook for the first quarter, it said that combined with wage growth, muted inflation and tax cuts should support strong consumer spending.
Ibec's latest outlook predicts growth of 3.1% for this year and 2.8% for next year.
It also forecast that an inflation rate of just 0.5% due to a weak sterling and continued strong price competition in retail.
Ibec said that export growth slowed last year and this is expected to continue into 2017. "Brexit effects are already evident in the export sector and are likely to intensify as negotiations get under way," it noted.
The employers group said that it is cognisant of the risks from Brexit and potential moves in the US, including a possible border tax on imports, that could affect Ireland's trading relationship.
But the good news, according to Ibec's director of policy and public affairs Fergal O'Brien, is that Ireland is facing these challenges "from a position of strength".
"The Irish Government must take advantage of our economic growth and ensure decisive policy action to improve competitiveness and adopt measures to minimise losses from Brexit, particularly in the regions," Mr O'Brien stated.
"Investment and liveability issues such as transport, housing and education must be prioritised before the window of exceptionally cheap money closes any further," he added.
