The ESRI is advising the government to adopt a neutral budget this year to avoid a return to boom-bust economics.

In it's latest report, the think-tank says the 1.5 billion in spending increases and lower taxes planned for Budget 2016 is not needed in an economy already growing at the fastest pace in Europe.

The ESRI says Ireland's economy will continue to perform strongly, with GDP growth of 6 percent this year and 4.5 percent next year.

Economist David Duffy says consumer spending is one of the main factors driving growth: