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Key Findings

Private sector debt decreases in 2023 driven by Non-Financial Corporations

Online ISSN: 2009-5597
CSO statistical publication, , 11am

Key Findings

  • The Irish economy shrank in 2023 due to reduced profits of foreign multinationals here.

  • While their profits were lower, foreign corporations paid more tax (€19bn) and more pay to employees (€42bn) than in previous years.

  • Households saved €22bn in 2023, the same as 2022, but the amount of saving that went into real assets such as new homes went from €11bn to €17bn. 

  • Households' debt-to-income ratio continued to decline as income grew faster than new borrowing.

  • Government consolidated debt was €208bn or 41% of Gross Domestic Product (GDP) at the end of 2023, down from 126% in 2013.

  • The balance sheet of financial corporations increased in 2023, surpassing €8 trillion by year-end.

  • Private sector debt decreased in 2023 but remained above the EU target threshold of 133% of GDP.

Statistician's Comment

The Central Statistics Office (CSO) has today (04 November 2024) released the Institutional Sector Accounts, Non-Financial and Financial 2023.

Commenting on the release, Peter Culhane, Statistician in the National Accounts Division said: “Today's release shows that households added €22bn to their wealth in 2023, of which €17bn went into new homes and other capital assets. The Household debt-to-income ratio continued to decline and stood at 89%, close to the ratio for the wider Eurozone of 87%.

Private sector debt decreased in 2023 but remained above the EU target threshold of 133% of Gross Domestic Product (GDP). The fall was driven by Non-Financial Corporations, while Household debt increased during the year.

General Government consolidated debt was €208bn or 41% of GDP at the end of 2023, down from 126% in 2013. The Government registered a surplus of €7.6bn in the year. Meanwhile, the balance sheet of the financial corporations sector rose during 2023. The financial assets of the sector grew by €616bn in 2023 to €8,078bn, largely due to holding gains during the period."

Editor's Note

These accounts published today show the economic situation for the separate sectors of households, corporations (financial and non-financial, domestic, and foreign-owned), and government. They integrate the profit and loss account (non-financial account) for each sector with changes in their balance sheets (financial account). They thus provide the most detailed integrated picture of the Irish economy.