The OECD is warning that a strong rise in Ireland's property prices may boost construction activity in the short-term, but risks a return to another property bubble.

In its latest global economic assessment, the international think-tank says the Irish economy will grow by 5.6 percent this year.

It also gave a broad backing to the Budget, which it believes should help get more people back into work.

But it's found "significant" risks remain, saying high debt levels leave the economy vulnerable.