Allied Irish Banks confident in Irish agri sector

The Managing Director of AIB, Donal Forde has predicted that we won't see further upward drift in the euro/dollar and Euro/sterling exchange rates from the current range.

Speaking at an AIB conference on CAP reform, Donal Forde acknowledged that the strength of the euro relative to the dollar and the pound was affecting the competitiveness of Irish products in the US and UK markets.

However he doesn't expect further upward drift from the €1:US$1.25 range or from the €1:Stg£0.67 range. He said that he does not expect the currency relativity to deteriorate to any significant degree in the short term.

He went on to outline a positive outlook for many of the key economic indicators. He expects GDP to grow by 4% in 2004, up from 2.25% last year and against a background of lower growth in other European economies.

On interest rates, Donal Forde expects a further lowering of the rate, maybe by a quarter of a percentage point or maybe more. He expects Irish inflation to be around 2%.

All these are positive indicators for the Irish economy and Donal Forde reports a more positive attitude among the bank's business customers in the opening quarter of this year compared to the end of last year. However this more positive attitude in business has yet to be reflected in a more positive outlook from consumers.

Donal Forde reiterated AIB's committed to Irish agriculture, highlighting their intention to grow their market share. As part of this strategy the bank has strengthened their specialist agri advisory service.