EU Apple ruling does not impact Irish debt-funding plans - NTMA
Brexit will slow Irish growth in 2017, the National Treasury Management Agency (NTMA) has warned bond investors.
The UK may enter recession after its vote to leave the EU and for every 1pc drop in UK gross domestic product (GDP) Ireland’s growth may fall by 0.3pc to 0.8pc, the NTMA said in a presentation to investors.
Growth data for 2016 will not be much affected but this year is likely to see some impact, the presentation said.
The NTMA also warns investors that standard measures like debt to GDP are distorted in the Irish case, because the activities of some multinationals which makes the Irish economy appear bigger than the reality.
"GDP and GNP are exaggerated by the activity of multinational companies; behind the headline numbers, Ireland’s growth has slowed but is still one of the fastest in the euro area," the presentation said.
The €13bn that Apple has been ordered to pay to Ireland in back-taxes is not included in Irish funding plans, the NTMA said.
The money may never be paid, because Apple and Ireland have appealed the controversial ruling – or could be claimed by other countries, the NTMA said.
As a result, the NTMA "has made no allowance for these funds" when it looks at Ireland’s funding needs.