Investec made the prediction as it set out its favoured stock picks for 2017, saying it expected CRH, Bank of Ireland, Paddy Power, Betfair, Ryanair and Smurfit Kappa Group to do well of the large listed companies.
Among the small and mid-sized companies, recruitment firm CPL, hotel group Dalata, sea transport company Irish Continental Group, builders merchant Grafton Group, convenience food company Greencore and Irish Residential Properties REIT would do well, it said.
“Following on from a momentous 2016 in terms of political surprises, we enter 2017 with the prospect of fiscal reflation from the new US administration. This should drive US GDP towards 3% growth, the highest level in a decade, and see global growth reach 3.7%, according to our economists.
“Meanwhile, Ireland is expected to outperform the EU for a fifth year in a row, driven by the domestic economy,” according to Investec Ireland.
The large company picks are firms that can deliver growth while also offering attractive valuation levels, Investec said.
Among the small and mid capital companies, Investec said it was looking for similar characteristics, with exposure to Ireland seen as a highly attractive attribute.
Investec analysts said that building materials giant CRH, valued at €27bn, is well positioned to benefit from a pick-up in infrastructure spending in the US, with president-elect Donald Trump vowing to inject up to €1 trillion in capital investment.
As well as promising to invest in highways, airports and bridges across the nation, Mr Trump has controversially vowed to build a giant wall on the border between the US and Mexico.
Packaging giant Smurfit Kappa, valued at €5bn, is also set to benefit from growing markets across Europe and the Americas, according to Investec. Its analysts also said that Ryanair has the aircraft to achieve 8% growth in 2017.
Davy Stockbrokers earlier this week had predicted that a number of Irish companies have significant potential in 2017.
In its so-called “conviction list”, Davy recommended many of the same companies as Investec.
Other companies that Davy earmarked include insulation manufacturer Kingspan, which it said had a potential upside of 24% this year.
Builder Cairn Homes was pinpointed as “one to watch” by Davy because it has a land bank of close to 12,000 homes, and housebuilding was likely to significantly benefit from Government incentives.