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Irish finance minister says won't base policy on 26 percent growth rate

Published 13/07/2016, 15:00
© Reuters. Ireland's Minister for Finance Michael Noonan displays a copy of the Budget on the steps of Government Buildings in Dublin

DUBLIN (Reuters) - A huge revision suggesting Ireland's economy grew by 26 percent last year will have no impact on budgetary decisions for next year which will be based on a more level of growth of 5 percent, finance minister Michael Noonan said on Wednesday.

Noonan said despite the big jump, GDP remained the valid denominator to assess Ireland's debt sustainability and he expected investors would "work with" the debt-to-GDP ratio that will fall to around 75 percent this year and not the 88 percent originally estimated.

© Reuters. Ireland's Minister for Finance Michael Noonan displays a copy of the Budget on the steps of Government Buildings in Dublin

"We're not making any decisions on an economy growing at 26 percent, we're making decisions on forecast growth of 5 percent this year and the increase in employment and tax revenue is consistent with that," Noonan told a news conference.

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