Ireland has the world’s highest per capita debt, but it will survive
Dublin: The Department of Finance has just released a report that will come as a surprise to those who only hear good news about Ireland. According to the Department of Finance, despite high economic growth, the country’s per capita debt remains significant.
The national debt stood at €226 billion at the end of last year, according to the Department of Finance’s annual report on Ireland’s public debt. This equates to €44,250 per person in the country, making it one of the highest per capita debt levels in the world, the report said.
However, debt as a percentage of the size of the economy is declining.
It accounted for 86.4% of total national income last year and is expected to fall to 81.6% this year.
During COVID, the gross national debt was €236.1 billion, or 101% of GNI in 2021. Prior to COVID, it was €203.4 billion, or 96.5% of GNI in 2019.
With an ageing population, climate change also poses a “long-term challenge” to the country. According to the report, the rise in interest rates will cause a crisis in the country, at least in the short term. The war in Ukraine, combined with a drop in energy prices, is causing a cost-of-living crisis.
However, with the majority of the country’s debt at fixed rates and with relatively long maturities, Ireland has little to fear from other shocks, according to Finance Minister Michael McGrath.
McGrath stated that the public finances must be prepared to meet these challenges despite the existence of large deficits, and the report emphasised the importance of prudent debt management and the rebuilding of existing fiscal buffers.
“In addition to the ECB’s position, each country needs to make appropriate decisions for strong domestic growth and consider alternatives to the rising cost of living that people are facing,” Michael McGrath said.
Irish Samachar English News
Kindly click the link below to join WhatsApp group chat to get important news and breaking news from Irish Samachar.
Comments are closed.