The report, released today, suggests domestic demand will increase by 5pc in 2021 and 3.5pc next year.
While the current national lockdown will lead to another fall in demand in the first three months of this year, the vaccine roll-out increases the prospects of a swift recovery in spending through the rest of the year and into 2022, according to the report.
Irish households experienced the fastest growth in disposable incomes in the European Union last year, according to the report, with a record €13bn increase in bank deposits over the past 12 months.
Increased consumer spending in December, when the economy was partially reopened, suggested there is “significant pent-up consumer demand once restrictions are eased”.