Ireland's economy will continue to grow this year despite significant global challenges.
In its quarterly economic commentary, the ESRI expects GDP growth of 6.8 percent.
However it has revised down growth in the domestic economy to 4.4 percent, from 5 percent in the previous bulletin.
The institute forecasts inflation to average 7.1 percent this year, and predicts a 2 percent reduction in house price growth, because of rising interest rates.
However Professor Kieran McQuinn of the ESRI says there are challenges ahead for Ireland's economy: