ESRI REPORT SAYS COVID-19 POSES SINGLE LARGEST CHALLENGE TO THE ECONOMY SINCE THE BANKING CRISIS

2 April 2020 No Comments by The Northern Standard

Michael Fisher

Economists from the Economic and Social Research Institute say an EU-wide stimulus is needed after a dire forecast of how the Irish economy will be affected by the coronavirus emergency. The think-tank says Covid-19 poses the largest single challenge to the economy since the banking crisis of 2008.

It estimates the Republic’s economy could shrink by up to 7% this year, if the public health measures continue in place for the next twelve weeks. The labour market, which had been in a position of strength before the spread of the pandemic, is also set to face the largest quarterly shock in living memory, according to the ESRI.

It predicts that the unemployment rate will increase to 18% (almost one in five) in the second quarter of the year from 4.8% in the previous quarter, as more than 350,000 people lose their jobs. The Covid-19 virus will also result in a budget deficit of almost €13 billion, the ESRI forecast suggests. In the bestcase scenario, the shock will last only a short period. If the pandemic does not abate, however, the results are…

Comments are closed.