The Department of Finance indicated yesterday that it expects the general government deficit will equal €19bn, or 5.5% of GDP in 2020. The Government deficit forecast is at €19bn.
This is well inside the €21.6bn (6.2% of GDP) forecast in October’s Budget (and €20.5bn,or 5.7% of GDP,in 2021). Ireland’s deficit will now clearly be one of the lowest in the EU this year.
Davy Stockbrokers say the better starting point for the deficit will also provide the Irish government with room for manoeuvre should it wish to extend fiscal supports in 2021.