Davy has significantly revised its forecasts for the Irish economy - predicting faster growth of 4.8 percent in 2014, 3.7 percent in 2015, and 3.4 percent in the following year.

This would see Ireland's GDP hitting its 2007 pre-recession peak before the end of this year - one year earlier than Davy had predicted in previous forecasts.

The company had expected Ireland's economy to grow by 3.5 percent in 2014, 3 percent this year, and 2.8 percent next year.

The report believes that unemployment will fall to 7 percent in 2017.

Davy's chief economist, Conall Mac Coille explains that this growth is being driven by increases in exports: "The ICT services sector, pharmaceutical companies, and indigenous manufacturers are all seeing output expand at a rapid pace."

He expects that a slowdown in the European economy will be offset by the weakening of the euro - meaning that exports will remain strong.

Davy's analyses says that consumption increased by 0.5 percent this year - and that it will grow up by 2 percent in 2015. 

It is also predicted that the tax reforms that closed the 'Double Irish' tax loop-hole will not have a negative impact on foreign direct investment.

The firm also says that changes to mortgage regulations will slowdown house price inflation - but will not have a negative impact on the economy.