Colin Hunt, the chief executive of AIB, stated that upcoming tariffs on exports to the US may dampen foreign direct investment (FDI) flows to Ireland. Nevertheless, he assured that these changes would not induce a recession in 2023, marking a significant departure from Ireland's historical economic cycles. The economy is expected to maintain a growth of 3.1% this year, while anticipating a decline to 2.3% by 2027. AIB's ownership stake decreased substantially, signaling a return to private ownership after past nationalization during a banking crisis.
Hunt said the threat of a 25pc tariff on exports to the US as soon as next month will not trigger a recession here. "We don't believe it will put us into recession this year," Colin Hunt said.
Ireland is an open economy and that openness means it is now exposed, growth will become lower and more modest, he said.
However, the bank expects modified domestic demand, a key measure of growth within the 'real' economy in Ireland to continue to grow, by 3.1pc this year, even allowing for a hit to trade from tariffs.
AIB itself reported on Wednesday that the State's stake in the bank has been reduced to 12.39pc with "a clear path to a return to full private ownership this year."
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