Goodbody Stockbrokers has dramatically upgraded its growth forecasts for the Irish economy this year to 5.5pc from a previous forecast of 4.3pc.
The stockbroking firm said Ireland is experiencing its most promising economic expansion since the 1990s.
Goodbody economists Dermot O'Leary and Juliet Tennent also said GDP is expected to grow by around 4pc for both next year and 2017.
This, they said, would mean Ireland would be the fastest growing economy in the Eurozone for four years.
"The dynamics of this non-inflationary credit-less expansion - what we call NICE - are akin to the growth period of the 1990s, when unemployment was falling from high levels," they said.
"This is in stark contrast to the credit-fuelled overheating of the pre-crash 2000s."
Goodbody said domestic demand, which remains 8pc below peak, should grow by around 5pc in both 2015 and 2016. And it forecast the budget deficit will come ahead of the Government's target again this year, with a balanced budget by 2017.
Goodbody said the housing price slowdown following the new Central Bank mortgage rules is likely to be temporary, with prices likely to rise on the back of low supply.