Ireland’s budget deficit narrowed in the year 2014 to reach well below the target set by the European Union, data from the statistical office showed Monday.
The general government deficit for 2014 totaled EUR 7.629 billion, or 4.1 percent of GDP, compared to EUR 10.15 billion, or 5.8 percent in 2013.
The EU had recommended to the authorities to ensure that the budget deficit do not breach 5.1 percent of GDP in 2014. The ratio is forecast to ease further this year to 2.9 percent, which is slightly below the Maastrict target of 3 percent.
In the fourth quarter of 2014, the budget deficit narrowed to 3.1 percent of GDP from 4.5 percent in the previous three months. The shortfall was 5.3 percent in the same period a year ago.
Ireland’s economy grew for a second consecutive year in 2014 at 4.8 percent, which was the fastest pace since 2007 and marked the strongest growth in the EU, led by robust investments, exports and domestic demand.
Late 2013, the country exited an EU/IMF bailout program it entered in 2010 following a banking sector crisis.
The general government debt level eased to 109.7 percent of GDP at the end of 2014 from 114.3 percent in the third quarter and 123.2 percent a year ago. The Maastricht treaty recommends a debt-to-GDP ratio of 60 percent.
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