‘Budget cuts of just €1bn to reach 2.9% deficit target’

The Government will be able to reach a 2.9% fiscal deficit target in 2015 through a budget adjustment of €1bn as the economy will grow by 3.3% this year, according to Merrion Stockbroker economist, Alan McQuaid.

Mr McQuaid, in his latest quarterly economic outlook, forecasts GDP to grow by 3.3% this year and 3.9% next year — well ahead of the Government’s forecast of 2.1% GDP growth.

The European Commission, IMF, and the Irish Fiscal Advisory Council have all urged the Government to implement €2bn in budget cuts next October to meet the 3% deficit target by 2015 because of the uncertain economic backdrop.