Faster growth: Moody’s upgrades Ireland by 2 notches

Moody’s says faster growth will reduce its debt-ratio faster than had been expected.

WASHINGTON: Moody’s raised its credit grade for Ireland by two steps, to baa1 from baa3, citing the impact faster growth will have on improving the country’s debt profile. While the country still has a high level of public debt and sizable fiscal deficits, Moody’s said faster growth will reduce its debt-ratio faster than had been expected. “Moody’s expects Ireland’s economy to grow considerably faster than the Euro-area average over the near to medium term,” the agency said. “Domestic demand is now accelerating, led by a broad-based recovery in gross fixed investment but also by a revival in private consumption spending despite households’ high debt overhang.  Faster growth will support the ongoing fiscal consolidation and put the debt on a firm downward trajectory,” it added. At the same time, the recovery of the Irish property market has allowed the government to reduce contingent liabilities by selling off assets taken over in the financial crisis.

Published in The Express Tribune, May 18^th, 2014.

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