DAVY VIEW

The Budget policy measures mean that Ireland is now expected to have a deficit of 5.7% of GDP in 2021 (up from 4% pre-Budget), approximately a €6bn stimulus. The government has taken advantage of better-than-expected tax revenues and a smaller deficit in 2020 (6.2% of GDP) to fund business supports, health and social spending. Hence, the debt/GDP ratio is expected to be 66.6% of GDP in 2021, revised down from 68.4% in April’s projections.