Written answers

Tuesday, 16 October 2012

Department of Finance

Economic Statistics

Photo of Patrick NultyPatrick Nulty (Dublin West, Labour)
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To ask the Minister for Finance his forecasts for each year out to 2016 for nominal GDP, GDP growth, nominal GNP, GNP growth, nominal General Government Deficit, GGD as a percentage of GDP, nominal cost of interest on the national debt, cost of interest on the national debt as a percentage of GDP, and the assumed average interest rate on the overall national debt underpinning these latter assumptions, the assumed average interest rate on that part of the national debt issued in the relevant year; and if he will make a statement on the matter. [44536/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The data requested by the Deputy for the period 2012-2015 are set out in the table below. My Department’s current forecast horizon is to 2015 and so forecasts post 2015 are not published at present. The 2012 to 2015 forecasts are taken from the Stability Programme Update (SPU) published in April this year. The Deputy should note that my Department is currently updating its macroeconomic and fiscal forecasts and these updated figures will be published in the coming weeks.

Department of Finance Macroeconomic and Fiscal Projections 2012-2015 - as per April 2012 SPU

2012
2013
2014
2015
Nominal GDP (rounded to nearest €25m)
158,925
164,175
171,150
178,850
Real GDP Growth
0.7
2.2
3
3
Nominal GNP (rounded to nearest €25m)
124,650
127,575
132,050
136,975
Real GNP Growth
-0.2
1.4
2.3
2.3
General Government Balance (rounded to nearest €5m)
-13,115
-12,355
-8,140
-4,950
General Government Balance as % of GDP
-8.3
-7.5
-4.8
-2.8
National Debt Interest Expenditure* (€ billions)
6.1
7.0
7.6
8.0
National Debt Interest Expenditure as % of GDP
3.9
4.2
4.4
4.5
National Debt - year-end estimate (€ billions)
138.1
152.8
163.4
170.4
Implied Average Interest Rate
4.8
4.8
4.8
4.8

Rounding may affect totals

*National debt interest expenditure excludes the sinking fund payment & debt management expenses. Together these three items make up total debt servicing expenditure.

As regards assumed average interest rates, having consulted with the National Treasury Management Agency (NTMA), I am of the view that it would be unwise to provide details regarding interest rate assumptions on new debt issuance as this could compromise the State’s ability to access funds at the most competitive rate possible.

However, it is possible to calculate an implied technical average interest rate by dividing the estimated national debt interest expenditure for the year in question by the average stock of national debt outstanding in that year. These implied average interest rates are shown in the table above.

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