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Fitch Ratings upgrades Ireland's credit rating from AA- to AA
(MENAFN) Fitch Ratings announced on Friday the upgrade of Ireland's long-term foreign-currency rating from AA- to AA, accompanied by a stable outlook. The rating agency cited Ireland's robust budget performance since 2022 as a key factor driving the upgrade, with expectations for continued strong fiscal management in the foreseeable future.
Ireland has demonstrated a remarkable budget surplus, amounting to €8.6 billion (USD9.34 billion) in 2022 and €8.3 billion in 2023, equivalent to 1.7 percent of GDP. Fitch's forecast for 2024 and 2025 projects surpluses in the range of €4 to €5 billion. The country's prudent domestic fiscal framework has been instrumental in managing risks associated with windfall corporate tax revenue, primarily from multinational enterprises (MNEs), which reached €11.2 billion in 2023 and is expected to remain above €11 billion in the coming years.
Additionally, Fitch highlighted Ireland's steadily declining public debt trajectory, attributable to sustained budget surpluses. This trend underscores the country's fiscal resilience and prudent fiscal management practices.
In a separate announcement, Fitch affirmed Greece's long-term foreign-currency rating at 'BBB-' with a stable outlook. Greece's ratings reflect income per capita levels and governance indicators that surpass the 'BBB' median, supported by its EU and eurozone membership, which bolster policy credibility.
Fitch projects a continued reduction in Greece's general government deficit, with a forecasted deficit of 0.8 percent of GDP in 2025 and primary surpluses averaging 2.3 percent in 2024-2025, up from 1.9 percent in 2023. Economic growth in Greece is anticipated to reach 2.3 percent in 2024 and 2.4 percent in 2025, surpassing the eurozone average of 1.1 percent, driven by real-wage increases, employment growth, and solid investment.
Overall, Fitch's assessments underscore the fiscal resilience and economic prospects of both Ireland and Greece, reflecting positive trajectories and prudent policy frameworks in place in both countries.
Ireland has demonstrated a remarkable budget surplus, amounting to €8.6 billion (USD9.34 billion) in 2022 and €8.3 billion in 2023, equivalent to 1.7 percent of GDP. Fitch's forecast for 2024 and 2025 projects surpluses in the range of €4 to €5 billion. The country's prudent domestic fiscal framework has been instrumental in managing risks associated with windfall corporate tax revenue, primarily from multinational enterprises (MNEs), which reached €11.2 billion in 2023 and is expected to remain above €11 billion in the coming years.
Additionally, Fitch highlighted Ireland's steadily declining public debt trajectory, attributable to sustained budget surpluses. This trend underscores the country's fiscal resilience and prudent fiscal management practices.
In a separate announcement, Fitch affirmed Greece's long-term foreign-currency rating at 'BBB-' with a stable outlook. Greece's ratings reflect income per capita levels and governance indicators that surpass the 'BBB' median, supported by its EU and eurozone membership, which bolster policy credibility.
Fitch projects a continued reduction in Greece's general government deficit, with a forecasted deficit of 0.8 percent of GDP in 2025 and primary surpluses averaging 2.3 percent in 2024-2025, up from 1.9 percent in 2023. Economic growth in Greece is anticipated to reach 2.3 percent in 2024 and 2.4 percent in 2025, surpassing the eurozone average of 1.1 percent, driven by real-wage increases, employment growth, and solid investment.
Overall, Fitch's assessments underscore the fiscal resilience and economic prospects of both Ireland and Greece, reflecting positive trajectories and prudent policy frameworks in place in both countries.
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