AIB upbeat on Irish economy

The Irish economy is poised for much stronger growth in 2004 and beyond, according to AIB Global Treasury's assessment published today.

Real Gross Domestic Product will rise by at least 4% in 2004 and 5% in 2005, the report states.

The resilience of the labour market, the decrease in the annual rate of inflation and the Government's general budget surplus are the three driving forces.

Domestic spending is forecast to rise by 3.5% to 4% in 2004-2005 while exports are expected to grow by 6-7%.

Describing the outlook with Ireland's main trading partners as "particularly positive", the AIB report also says the euro should trade below €1.20 on average in 2005.