Market comment

Buoyant tax revenues provide room for manoeuvre in Budget 2022

DAVY VIEW

This morning’s Services PMI at 63.7 indicates that the economic rebound has continued in September. However, cost pressures accelerated to their sharpest pace since 2000. September’s public finance data showed tax revenues well ahead of official forecasts, so the deficit in 2021 could be closer to €15bn, or 3.5% of GDP, than the €20bn (5% of GDP) expected. This provides the government with room for manoeuvre in Budget 2022.

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Oct 5 2021, 08:00 IST/BST

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