The economy's set to continue growing strongly next year, with full employment likely by the end of 2018.

The ESRI says the economy will have grown by 5 per cent by the end of the year, and will post growth of 4.2 per cent next year.

In it's latest forecast, the think tank says wages will continue rising, as unemployment falls.

However if the ECB raises interest rates homes loans here could become unsustainably high and overheat the economy