The Economic and Social Research Institute is predicting stronger than expected economic growth of 3.5% this year.
In its Quarterly Economic Commentary, the Institute also says unemployment is expected to fall to a little over 9% by the end of 2015.
However, it is cautioning about weak growth prospects in the Eurozone and the possible impact of that on Ireland.
ESRI Economist David Duffy is one of the report's authors:
A summary of some of the ESRI's findings
Though the ESRI is saying unemployment could drop to a little over 9% by the end of next year, it is warning it still remains a serious issue.
Mr Duffy says a lack of investment and credit could impact employment figures, "Even though we see unemployment coming down, we do think that the high rate of unemployment is a challenge for the economy, and particularly the fact that about two-thirds of those who are unemployed are long-term unemployed."
In further signs the economy is recovering, Vision-Net has released new figures that show the number of start-up companies reached its highest level last month since before the recession.
Over 1,500 new firms set up in July - 11% more than this time last year - that is equivalent to 49 new companies starting up every day.
The professional services sector was the most active industry with 22% of new enterprises, followed by the wholesale and retail sector at 10% and the construction industry at 9%.
Managing Director of Vision-Net is Christine Cullen: