Ireland's continued economic success depends on the performance of its export sector, according to State enterprise agency Forfás.

In its end of year statement published yesterday, Forfás reported that 2006 was another strong year for the economy, with increases in areas such as employment and research and development (R&D).

Chief executive Martin Cronin said the economy had been driven in recent years by strong consumer and Government demand. However, he said sustained growth would depend on the export sector.

"Ireland needs to continue to take measures to promote export-led growth and increased innovation in the development of products and services for world markets," he said.

Traded services became an increasingly important component of the economy in 2006, with multinationals such as Amazon, Google, eBay and Yahoo locating their European headquarters and a range of business support activities here.

The manufacturing sector also contributed to the economic success, but Mr Cronin said this sector must be supported to meet the challenges of globalisation. "We also need to accelerate the internationalisation of our services sector," he added.

In 2006, the level of jobs supported by development agencies rose by almost 6,000 to 305,062.

While the level of investment in R&D was strong, Forfás warned that weaknesses remained in higher-education infrastructure.