S&P Upgrades Ireland's Fiscal Outlook to Positive

S&P Global Ratings has upgraded Ireland’s outlook to 'positive' from 'stable', attributing this change to remarkable fiscal overperformance driven by corporate tax collections, which saw a 14.9% increase in the first ten months of 2024 compared to the previous year. This surge, enhanced by a €14 billion back-tax windfall from Apple Inc., is projected to push Ireland’s budget surplus to 7.5% of national income. Fitch has affirmed its 'AA' rating for Ireland, citing a prudent fiscal framework that mitigates risks associated with concentrated corporate tax revenues. S&P estimates that even excluding the Apple windfall, Ireland's fiscal surplus will remain the highest in the eurozone at 2.8% of national income. Both ratings agencies had previously upgraded Ireland's ratings in May, reflecting confidence in its economic resilience and fiscal management. The outlook enhancement signifies potential for further upgrades in the next 24 months if fiscal conditions continue to improve.