Ireland is on course to have economic growth of three per cent in 2017.
That is one of the main findings in the EU Country Report for Ireland.
However, it said the Government here will have to improve its taxation policy in areas such as consumption, environment, property and labour.
Patrick O'Riordan, who is EU Country attaché for Ireland, says all the projections for the Irish economy this year are positive.
“Ireland is doing very well, it has certainly got one of the highest growth rates and we are forecasting continued high growth rates, over 3% in 2017 and 2018.
"So the economy is doing very well, a lot of progress has been made. We’re saying keep progressing in that area, don’t let up and be cautious to build up a certain buffer to deal with threats that are arising.”