Ireland enjoys big improvement in debt metrics

Ireland has recorded the biggest improvement in its debt metrics of any EU state in the past year.

Eurostat figures show government debt as a percentage to gross domestic product (GDP) stood at 102 per cent of GDP at the end of June, down from 114.5 per cent 12 months previously.

In real terms, the State’s debt fell by €209.7 billion to €204.4 billion, which equates to a 12.5 per cent decline.

The next best EU state was Greece, which saw its debt to GDP ratio decline by 9.7 per cent, followed by Malta (5.8 per cent) and Latvia (5.7 per cent).

Minister for Finance Michael Noonan now expects the State's debt to fall below 100 per cent of GDP by the end of this year, three years ahead of previous forecasts, bringing Ireland close to the European average.

The improvement reflect a combination of increased GDP and the early repayment of IMF loans.

Government debt had previously ballooned to a record high of nearly €219 billion or 124.7 per cent of GDP in the first quarter of 2013.

The Eurostat figures show show that at the end of the second quarter of 2015, tgovernment debt to GDP ratio in the euro area stood at 92.2 per cent, compared with 92.7 per cent at the end of the first quarter of 2015.