Goodbody Stockbrokers has said that Ireland's robust performance can continue if a Brexit deal is reached.
But the stockbrokers have warned that without a deal, the country faces a significant shock that that could push the economy into recession in the next 18 months.
Goodbody said they continue to assume that the UK will leave the EU in an orderly manner on March 29 - or more likely later.
But it said that the risks of a disorderly exit have risen over recent weeks.
"A game of chicken is now in train between the UK and the EU. How this game plays out will determine whether the Irish economy continues to grow healthily over the next 18 months or potentially falls into recession," Goodbody said in its latest economic outlook.
Goodbody has forecast core domestic demand growth of 4.5% for this year and 3.7% in 2020 if an orderly Brexit is achieved.
It said the main drivers of this growth are the robust and sustainable growth in consumer spending and ongoing recovery in the construction sector.
But it added that government spending is also making "an unnecessarily large contribution" to economic growth when it should be acting to take some steam out of an economy that is at full employment in 2019.
"Irish policymakers should know only too well that good economic times should be used to prepare for an inevitable turn in the cycle. In a fiscal context this should mean building up buffers and carefully managing public spending," the stockbrokers said.
"Recent evidence suggests that some of the discipline of the 2009-2015 period is being lost," they added.
Goodbody has listed ten key issues facing the country this year.
In addition to Brexit, they include the role of US investment flows, the housing market, full employment, corporation tax threats, household releveraging and the office cycle peak.
Rising inflation, upward pressures on public spending and another year of challening politics are also included in the threats.
"While recognising that the trajectory of GDP is heavily influenced by the performance of the internationally traded sector, most of which is not affected by UK demand, the potential shock to confidence, the financial sector and trade flows in a no-deal scenario would, in our view likely result in the Irish economy falling into recession if the hard-Brexit outcomes for the UK that have been modelled by the Bank of England were to come to pass," Goodbody said.
"The economic, political and social consequences of the coming eight weeks could not be higher," the stockbrokers added.
