Ireland Faces Financial Storm: Aging Population and Fiscal Challenges Ahead

The Finance Ministry has issued a stark warning that Ireland's national debt could more than double by 2065 without significant reforms. The ageing population is projected to push the budget deficit to 7.9%, posing a substantial threat to the country's fiscal health.

Projections indicate that Ireland's old age dependency ratio will jump to 55.2% by 2065, stressing public finances and stalling economic growth. A decline in volatile corporate tax receipts is anticipated between 2030 and 2040, necessitating policy changes to prevent a fiscal downturn.

Without interventions like increased taxes, reduced expenditures, or improved public sector productivity, Ireland could face severe challenges. Age-related spending is expected to dominate public expenses, accounting for 46% by 2065. The country may also rely on foreign investment and a sovereign wealth fund to mitigate these pressures.