Ireland’s Household Debt Has Fallen but Remains Fourth in the Most Indebted Nation in EU

The household debt of Ireland had collapsed for more than 20 times which appeared to be much apace than Europe in 2016, underlining the amount of Ireland’s recovery from the debt-induced financial crisis.

Based on the statistics showed by the Irish Central Bank, Sweden ousts the Irish island on the ranking of the most indebted nation in EU as the Swedish region have low-interest rates which gave rise to concerns about the overheating in the housing market of the country.

The household credit serves as the disposable income percentage further weakened by 10.2 percent point in the previous year, reaching 140.9 percent versus the 0.5 pp overall downturn in the European Union.

The bank also mentioned that the contraction has weighed on the reduction in debt and improvement in the household incomes. The indebtedness has declined by 52.9 percentage point as the year 2012 ends versus with the decreased in the broader EU  by 3.3 percent.

Moreover, the Irish government was compelled to agree with the Europe and IMF program for economic stabilization in 2010 as the property bubble suddenly broke causing the string of banks to fall down. Despite the strong rebound, the economy remains to become one of the rapid-growing states in EU.