Business and employers' group Ibec is forecasting another year of robust economic growth driven by strong domestic demand and an ever strengthening labour force.
It is expecting growth of 4.2% of GDP for this year, followed by 3.2% for 2018.
According to Ibec's quarterly economic outlook, a strong labour market will "underpin the buoyancy of the domestic economy, but Brexit related trading challenges will remain for exporters".
The report also expects employment growth of 3% this year, with around 60,000 jobs being created.
The organisation believes the UK's decision to leave the EU will be a particular challenge for the regions, with Ibec suggesting some counties are five times more reliant on Brexit exposed industries than Dublin.
Another area where there is a bit of concern is around consumer spending, which has grown considerably since 2011, but much of it is accounted for by population growth.
Ibec says continued improvements in the labour market should see consumer spending rise by 2.8%.
It forecasts investment to grow by 8.4% as the construction sector continues to recover from a low base.
Ibec's Head of Tax and Fiscal Policy Gerard Brady said: "The Irish economy is now in a strong position with forecasts showing the pace of employment growth will run above 3% this year for the first time since 2007.
"All indicators suggest that the labour market is now tightening rapidly and weathering any Brexit uncertainty well.
"The business substance within the private sector is driving this growth with business employment, excluding in the agriculture sector and the self-employed, up by 5.2% in Q1.
"We expect unemployment will be below 6% by the end of the year."
