The International Monetary Fund expects the medium-term effects of Brexit on Ireland to be "negative and significant", while it believes the economy here needs to be future-proofed against the re-emergence of a boom-bust cycle.

In its latest country report on Ireland, the IMF said economic growth is robust and the medium-term outlook remains positive but the country faces a number of challenges - with Brexit chief among them.

The organisation cites the United Kingdom's vote to leave the European Union as the "most pressing and far-reaching challenge for Ireland".

It said while so far the impact of Brexit here has been modest, effects over the medium term "are expected to be negative and significant", while there could be "sizeable consequences for activity and employment" in rural parts of the country.

The IMF believes the risks are most acute for traditional sectors of the economy that depend heavily on trade with the UK.

The report on Ireland, which is not bailout-related, also points to ongoing global changes in corporate tax as contributing to uncertainty due to the sizeable role of multinationals in the economy here.

The UK has announced reductions to its corporation tax rate, while US President Donald Trump has signalled his desire to more than halve the American rate - from 35% to 15%.

To counter such developments, it recommends reinforcing the "dynamism of the domestic economy".

The ongoing housing crisis is also highlighted by the IMF.

It says the current situation has been driven by a mismatch between renewed demand and "the lagged supply response" following the property crash.

The organisation suggests a "well-structured levy" on vacant sites could help speed up the loan restructuring of distressed viable firms in the construction sector, while also unlocking further housing supply.