Tag: budget deficit

Irish parliament approves austerity budget

Irish parliament approves austerity budget

The Irish Government has outlined its austerity budget, aimed at saving €6 billion in spending cuts and tax hikes, designed the trim the country‘s budget deficit. Ireland is aiming to save €15 billion (£13 billion) between 2011 and the end of 2014 – 11% of the economy‘s annual output. The measures are a condition of […]

December 8, 2010 More
IMF-EU officials investigate Ireland’s books

IMF-EU officials investigate Ireland’s books

As Ireland looks set to accept a multi-billion euro loan, the International Monetary Fund (IMF) and EU officials have commenced their investigation of Ireland’s bank books. Yesterday, Governor of the Irish central bank, Patrick Honohan, said the country is expected to accept a “very substantial loan”. The news comes as speculation has been mounting all […]

November 19, 2010 More
OECD cuts UK economic growth

OECD cuts UK economic growth

Influential think tank, the Organisation for Economic Co-operation and Development (OECD) has today revised its growth for the UK economy, as a result of the Coalition Government’s austerity measures, designed to bring down the budget deficit. However, the revision comes as no surprise as experts have been predicting that the harsh spending cuts will undoubtedly […]

November 18, 2010 More
Ireland unveils measures to trim deficit

Ireland unveils measures to trim deficit

Ireland is the latest in a long line of nations forced to introduce tough austerity measures to deal with its spiralling budget deficit. The country’s Government has outlined €15 billion (£13.1 billion) worth of budget cuts and is aiming to shave the deficit to 3% of GDP by 2014 to keep within euro zone rules. […]

November 7, 2010 More
Spain’s economic growth stagnates in Q3

Spain’s economic growth stagnates in Q3

Figures have revealed that Spain’s economy stalled in the July to September period. The disappointing 0.2% annualised growth will be a blow to the economy, which is stalling due to measures taken by the Government to trim its spiralling budget deficit. The country is also battling with the highest unemployment rate in Europe. However, last […]

Greek economy to contract worse than forecast

Greek economy to contract worse than forecast

Greece has today forecast that its economy will contract by up to 3% in 2011 – worse than a previous estimate of 2.6%. Greece’s finance minister, George Papaconstantinou, said today: “Growth will contract by 4% this year, and next year by between 2.5% and 3%.” The country has been battling with its spiralling deficit and […]

October 27, 2010 More
UK economy sees Q3 growth of 0.8%

UK economy sees Q3 growth of 0.8%

The Office for National Statistics (ONS) has today revealed UK economic growth for the third quarter slowed to 0.8%, albeit double the rate analysts had forecast. Today’s figures will reduce the chance of more quantitative easing from the Bank of England in the short-term, according to many. Some have been calling for an injection of […]

October 26, 2010 More
Q3 GDP figures to be published tomorrow

Q3 GDP figures to be published tomorrow

The initial reading of third quarter economic growth will be published tomorrow by the Office for National Statistics (ONS). Economists expect growth to slow to 0.4% in the July to September period – down from 1.2% in the second quarter. However, tomorrow’s estimate is the first of three and could be revised upwards or downwards […]

October 25, 2010 More
Government unveils harsh spending cuts

Government unveils harsh spending cuts

Chancellor George Osborne has today unveiled his Comprehensive Spending Review – in what has been described as the most savage spending cuts since the Second World War. Mr Osborne confirmed he would proceed with almost all of the cuts he detailed in his emergency budget in June. Firstly, defending the cuts, Mr Osborne told parliament: […]

October 20, 2010 More
September public borrowing rises to record high

September public borrowing rises to record high

The Office for National Statistics (ONS) has today revealed public sector net borrowing totalled £15.607 billion in September – its highest for the month of September since records began more than 17 years ago. The figure was also higher than the £14.2 billion economists had expected and compares with £14.806 billion a year earlier. Overall, […]

Osborne to unveil Comprehensive Spending Review today

Osborne to unveil Comprehensive Spending Review today

Chancellor George Osborne will today reveal the Comprehensive Spending Review. He is set to provide details of how he intends to slash spending by £83 billion by 2014 as he endeavours to bring down the spiralling budget deficit. The cuts have received mixed responses; many have been critical of them warning that slashing the deficit […]

US budget deficit shrinks to $1.3tr

US budget deficit shrinks to $1.3tr

According to Government figures, the US budget deficit fell to $1.294 trillion (£813 billion) in the 12 months to the end of September. The deficit equates to 8.9% of GDP, down from 10% of GDP in 2009, but still represents the highest since the end of the Second World War. The target for President Barack […]

October 17, 2010 More
Pension tax relief slashed as Government looks to save more money

Pension tax relief slashed as Government looks to save more money

It has been announced that the Government is to reduce the annual amount of pension tax-free income in order to save £4 billion a year, to reduce the spiralling budget deficit. The tax-free amount is being slashed from £255,000 a year to £50,000 from April 2011. High earners will continue to be paid tax relief […]

October 14, 2010 More
Ireland’s budget deficit soars as banks drain economy

Ireland’s budget deficit soars as banks drain economy

Ireland’s central bank has said that Anglo Irish Bank, Allied Irish Bank and building society Irish Nationwide are all likely to need extra capital in order to stay afloat. The central bank has previously warned that a potential rescue for troubled lender, Anglo Irish Bank, will cost up to €34.3 billion (£29 billion). This has […]

September 30, 2010 More
Moody’s downgrade Spanish debt to Aa1

Moody’s downgrade Spanish debt to Aa1

Credit rating agency Moody’s has downgraded Spain’s credit rating today – just a day after unions held a general strike to protest against tough austerity measures. Like many other euro zone nations, Spain has introduced austerity measures, aimed at cutting its budget deficit, which is currently 11% of GDP. Spain aims to reduce the deficit […]

IMF: UK economy “on the mend”

IMF: UK economy “on the mend”

The International Monetary Fund (IMF) has today said it supports the Coalition Government’s tough austerity measures, designed to cut the budget deficit. The support comes despite many experts suggesting that the tough measures could pose a threat to the fragile recovery, because spending cuts and a hike in taxes will have slashed the forecast for […]

September 27, 2010 More
Romania’s entry into euro zone may be delayed

Romania’s entry into euro zone may be delayed

Romania’s President, Traian Basescu, has today said its entry date for the euro zone may be delayed as it introduces tough austerity measures in order to avoid a Greek-style debt crisis. The country’s current target date for euro zone entry is 1 January 2015 but Mr Basescu said this could be postponed by “one or […]

September 22, 2010 More
August public sector borrowing higher than expected

August public sector borrowing higher than expected

The Office for National Statistics (ONS) has today revealed public sector net borrowing totalled £15.302 billion in August – a record high for the month. The figure was higher as interest payments on gilts rose because of higher inflation. It was also much higher than the £12.51 billion expected by analysts. However, despite this, receipts […]

September 21, 2010 More
Government withdraws investment for UK car industry

Government withdraws investment for UK car industry

Business Secretary Vince Cable has warned that the UK’s car industry will not receive any further funding from the Government. Mr Cable was speaking at a conference in London organised by trade body, the Society of Motor Manufacturers and Traders (SMMT). However, he said the industry is “incredibly important to the UK economy” and insisted […]

July 1, 2010 More
Government proposes radical reform to benefits system

Government proposes radical reform to benefits system

As it continues with its priority of cutting Britain’s budget deficit, the coalition Government has indicated that incapacity benefits will be targeted in a welfare crackdown. Chancellor George Osborne has already announced tough austerity measures to cut the £155 billion deficit but has now made it clear that sickness benefits will be targeted, as they […]

June 28, 2010 More