Due to remarkably positive trends right across the Irish economy, the country's growth forecasts have been dramatically revised up from 3.1 percent to 6.1 percent this year, according to employers' group Ibec on Tuesday.
In its quarterly Economic Outlook, Ibec, the group that represents Irish business, said spectacular growth would make Ireland the fastest growing economy in Europe this year and pave the way for income tax cuts in next week's budget.
There is no need for another austerity budget, the focus instead should be on creating a better environment for job creation, it said.
Ibec also raised its 2015 gross domestic product (GDP) growth forecast from 3.9 percent to 4.5 percent, and this year's GNP growth forecast from 2.5 percent to 5.4 percent.
It said Ireland's exports will grow by over 12 percent this year, the strongest growth since 2000.
It added imports, however, will also grow strongly by 11 percent and the resulting net exports will contribute 3.5 percent to GDP growth, by far the largest contribution to growth.
"The economy is recovering much faster than most expected. Importantly, growth is coming from a broad range of sources, with domestic demand and trade contributing strongly. Ireland is set to be one of the world's best performing developed economies this year," said Ibec Chief Economist Fergal O'Brien.
But he said Ireland's growth figures need to be taken in context.
"Strong growth is typical in the early stages of recovery and the economy is still 3.5 percent below its peak in volume terms and 7.5 percent down in money terms," he said. "Many businesses continue to face challenging trading conditions and are still hampered by a boom time cost base. However, some really tough years of economic adjustment are clearly paying off."./.