General Government Debt / GDP Ratio

Ireland’s debt to GDP ratio fell dramatically over the last two decades against a background of a favourable economic situation and budgets which, generally speaking, were balanced or in surplus. At end-2007, the General Government Debt stood at 25 per cent of GDP, well below the European average. Largely as a consequence of the large deficits in 2008 and 2009, this ratio has increased to an estimated at 65.6 per cent at end-2009.

General Government Debt is the standard measurement of gross indebtedness used for comparative purposes within the EU. It does not allow the offset of assets held at year end.

During 2008 and 2009 the National Treasury Management Agency maintained large cash balances to assist with liquidity management and planning the timing of bond auctions. These balances stood at €21.4 billion at end-2009. When account is taken of the value of these cash balances and the assets in the National Pensions Reserve Fund, it is estimated that the net debt position was 39.5 per cent of GDP at end-2009.

General Government Debt / GDP Ratio - Trends since 1990 (HTML Version)