Domestic demand to drive growth

DOMESTIC demand will be the key driver of economic growth, AIB, the country’s largest bank, said yesterday.

For 2006 it is forecasting gross domestic product (GDP) growth of 5.3%, rising to 5.7% in 2007.

Those figures are less than the revised figures from Davy Stockbrokers last week, which said gross national product (GNP) this year will hit 7%. AIB’s chief economist is putting GNP in the current year at 5%, rising to 5.5% in 2007.