Gross domestic product (GDP) is set to grow 10pc this year, according to research from Davy.
The stockbrokers revised up its projection from the 4.8pc it previously forecast.
The main reason for the improved outlook is the strong performance of exports and multinational sector, Davy said.
In addition, the domestic economy suffered a shallower contraction than feared last year and in the first three months of this year.
In the report, Conall MacCoille of Davy, pointed to the exceptionally sharp rebound that has begun since May when Covid-19 restrictions started to ease, evident in credit and debit card spending, falling jobless claims, buoyant tax receipts and record purchases managers index survey readings.
The research is forecasting an exceptionally strong rebound in consumer spending, which it expects to be close to pre-pandemic levels by quarter four this year.
Irish residential property price inflation is set to equal 8pc this year, according to the report.
This will slow to 3.5pc next year, the report states.
Although the housing market has tightened, we still see mortgage lending of 10bn in 2021 and 11.2bn in 2022, up from 8.4bn in 2020, the report said.
Housing completions are forecast to equal 22,000 in 2021 and 26,000 in 2022 below the levels required to meet demand.
The absence of tax increases planned in Octobers Budget will support spending into next year, according to the report.
Gross domestic product (GDP) is set to grow 10pc this year, according to research from Davy.
