Ireland's debt ratios 'flattered' by its 'unusually' high GDP

Improvement in Ireland's GDP due to high corporation tax receipts from multinational companies, Parliamentary Budget Office says

Earlier this month, the Government announced details of Budget 2026 which increased spending by €9.4bn. Picture: Leah Farrell/ RollingNews.ie

Ireland’s debt ratios are well under the limits set by the EU but the figures are “flattered” by its “unusually high gross domestic product” (GDP), which is inflated by multinational activity, with more accurate measures showing a “heavier debt burden”, a Parliamentary Budget Office analysis shows.

Under EU rules, which aim to maintain discipline in government budgets, member states must seek to keep their debt ratio at 60% of GDP, while budget deficits must be at 3% of GDP. However, GDP is an unreliable metric for the Irish economy given the impact of the many multinational companies with operations here.