According to the Department of Finance, the Irish economy is forecast to grow this year by 15.6%.
This is an increase from the Summer Economic Statement of 8.8% and when measured by Modified Domestic Demand, growth is forecast to be 5.25% this year and 6.5% next year.
As part of the preparations for Budget 2022, these forecasts, which are twice the amount than what was previously thought, have been endorsed by the Irish Fiscal Advisory Council.
The Department of Finance also expects unemployment to be approximately 1% lower for each of the next three years, falling to 7.2% in 2022 and 5.3% in 2024.
The forecasts show that inflation will rise above 4% in the final quarter of this year and fall below 2% in the third quarter of next year.
Minister for Finance Paschal Donohoe said he would not use the better than expected growth to further increase the amount of money available for spending hikes and tax cuts in Budget 2022.
Minister for Public Expenditure Michael McGrath said that government departments are unlikely to spend the record €90.7 billion allocated for 2021.
Donohoe will be updating the deficit and debt forecasts at or ahead of the budget, taking account of spending and tax figures for September which will be published on Monday.