Irish government debt levels fourth highest in Europe

Ireland’s government debt levels were ranked fourth highest in Europe at the end of Q3 2013, according to new data released by Eurostat.
 
Government debt in the Eurozone fell for the first time since the end of 2007 at the end of last year’s third quarter, with the debt-to-GDP average for the euro area standing at 92.7 per cent, compared to 93.4 per cent in the previous quarter.
 
Ireland’s debt level was recorded at 124.8 per cent at the end of Q3 2013, with debt-ridden Greece saddled with the highest levels of government debt at 171.8 per cent, followed by Italy at 132.9 per cent and Portugal at 128.7 per cent.
 
Within the Budget, the Government forecast debt levels to fall to 120 per cent at the end of 2014, falling to 118.4 per cent at the end of 2015 and further to 114.6 per cent at the end of 2016.
 
The countries with the lowest debt-to-GDP ratio at the end of Q3 2013 included Estonia (10 per cent), Bulgaria (17.3 per cent) and Luxembourg (27.7 per cent).
 
Europe’s two biggest economies saw its debt fall, with Germany seeing its debt-to-GDP ratio fall to 78.4 per cent and France experiencing a decline in debt to 92.7 per cent of its GDP.
 
The level of debt in the majority of euro zone countries, however, remains well above the European Union’s (EU) official limit of 60 per cent of the economic output.
 
With developing economies seemingly picking up once again from emerging markets the International Monetary Fund (IMF) has also raised its global growth forecast for the first time in two years. However, it warned richer nations were still growing below full capacity.
 
In its latest World Economic Outlook report, the IMF predicts the global economy will grow 3.7 per cent this year, higher than its projection last October.


Image: Jim Woodward

Date published 23 Jan 2014 | Last updated 23 Jan 2014