Allied Irish Banks

Modified domestic demand, which strips out FDI transfer payments, is set to be 3.8% this year.

And housing completions will be just shy of 40,000, according to AIB's latest economic outlook.

However, it says that inflation will remain elevated at 3.5% on average, but should fall steadily next year.

The report also says that government borrowing costs will start to inch up as bond yields remain elevated.

And David McNamara is the chief economist with AIB.

Good morning, David.

Good morning, Joe.

Of course.

In business news, Ireland's economy is expected to continue growing despite rising inflation putting pressure on household budgets.

AIB has revised upwards its growth forecast to 3.8% this year and 3.1% next year.

It also predicts 39,000 new homes will be completed this year, but inflation is expected to peak before the end of December.

AIB chief economist David McNamara says the outlook is positive despite the challenges.

The global growth picture has been quite resilient, really, despite a myriad of risks out there, largely related to geopolitics.

And we can see that reflected in the surge in energy prices.

I often wonder.

No, on the Farm Show as well, we have a representative of AIB.

Now, he's not coming to, and he's made a promise on that, to flog AIB products.

He's coming to provide advice.

First of all, he's coming to highlight a conference that's being organised by the bank next week in the New Park Hotel.

So you're gonna see the likes of Aviva, Irish Life, Standard Life, and New Ireland, which is part of the Bank of Ireland group, all offering options in this space.

Um, and you're going to see our high street banks, Bank of Ireland, AIB, and probably Permanent TSB offering options as well, and you may well see stockbroking firms.

It's yet to be seen if we're going to see online, um, [lips smack] uh, houses, uh, supporting it as well.

Uh, I would suggest that they probably will, but let's wait and see.

So how does it actually compare to a traditional bank now?

Well, it is a bank, you know, like we think of it as an app, you know, we think of it as a sort of like an add-on, like a nice to have, like maybe we still, we think of AIB and Bank of Ireland as banks and Revolut isn't a bank, but it is actually a bank.

It is regulated as a bank.

And, you know, to be fair to Revolut in terms of the outage last week, that outage in the Irish market, Revolut was the only bank affected.

So that'll be a big pull factor.

But then there's another big push factor, which is that the traditional banks in the Irish market, and there's only three left standing now because Ulster Bank's gone, KBC's gone.

So Bank of Ireland, AIB and PTSB, they're maintaining these legacy bank networks and they're maintaining their ATMs and they've got all these costs and they're making people pay for that because you pay a monthly fee now to have an account at one of those.

So you'll be paying six euro a month if you have an account with AIB or Bank of Ireland and you're paying eight euro a month for your PTSB.

So unfortunately for those two, they're out.

But lots more provincial club action to look forward to the weekend coming, including Emeralds against Mount Leinster Rangers in a kind of a Kilkenny Carlo Camogie clash in the AIB Leinster Intermediate Club Camogie Championship in Mullinevat are involved in the football championship as well on a Sunday afternoon.

So it's a busy time of year and a big time of year.

It moves to straight knockout in the provincial championships, which is always, which is always interesting.

That's a problem.

So I would say no harm to have your Revolut, but have your AIB, Permanent TSB, whatever, Bank of Ireland as well.

Have

one.