Ireland Immigration: International credit rating agency Fitch announced last Friday that it has upgraded Ireland's credit rating outlook from "Stable" to "Positive," while affirming its credit rating at "A-." It stated that the European nation's economic growth momentum has been strengthening since it exited its international bailout program in 2013.
Fitch specifically noted that Ireland's tax revenue in the first half of 2015 surged by 11.7% compared to the same period last year, with the majority coming from corporate tax payments. Additionally, revenue from value-added tax and personal income tax grew by 8% and 6%, respectively.
Furthermore, Ireland has benefited from a low-interest-rate environment, allowing it to repay 18 billion euros in debt to the International Monetary Fund ahead of schedule, thereby saving significant interest costs.
In a statement, Fitch noted that "since the last credit review in February, the country's economic recovery has broadened across multiple sectors." It also mentioned that household spending has "increased significantly," and that consumer confidence, employment growth, and other economic data support its view on Ireland's recovery.
The credit rating agency expressed confidence that the country's budget deficit for this year will fall below the 3% of GDP (Gross Domestic Product) target. It also expects Ireland to reach a fiscal surplus target, which would be the first since 2007.
Fitch added that the European Union's asset purchase program, the depreciation of the euro, and lower oil prices have also contributed to Ireland's economic growth.
Currently, the credit rating agency estimates that Ireland's debt will fall below 100% of GDP by 2018, down from the 107.6% recorded at the end of last year. Furthermore, the economic growth rate is expected to reach 4.3% this year, but will slow to 2.4% next year, and 2.2% in 2017.
Ireland's economic growth rate reached 5.2% last year, making it one of the faster-growing countries among the 28 EU member states.