Allied Irish Banks Forecasts Continued Irish Economic Growth

Allied Irish Banks (AIB) forecasts continued growth for the Irish economy in its Autumn 2026 Economic Outlook Report. The bank predicts Modified Domestic Demand will grow by 3.8% this year and 3.1% next year, with exports expected to rise by 2.8% in 2026 and 5.2% in 2027. AI-related exports now represent nearly 13% of all exports.

Allied Irish Banks projects housing completions will increase to 39,000 in 2026 and reach 45,000 by 2028. However, the bank warns that inflation driven by higher oil and gas prices will peak in the final quarter of 2026, which will likely weigh on consumer spending.

Chief Economist David McNamara noted that while strong public, household, and business balance sheets provide resilience, the economic outlook remains tilted to the downside. He cited geopolitical uncertainty, inflation, and higher borrowing costs as primary risk factors.