The Central Bank is expecting the domestic economy to grow by over 5% this year - more than previously thought.
It's also revised upwards its projections for GDP growth - which includes multinationals - to over 15%.
The unemployment rate is forecast to fall to around 7% next year - with wage growth of around 5 %.
Mark Cassidy from the Central Bank says wages will rise in some sectors more than others.
"Those sectors that have the highest vacancies are those that have the highest wage pressures, these sectors included in particular finance, professional administrative services and also the construction sector.
"For other parts of the economy, and particular parts of the services sector that were forced to close down, like restaurants bars and hospitality, wage increases are much more subdued."
