Irish economy faces "largest recession in history," says ESRI
The Irish economy faces the largest recession in its history, as Covid-19 takes its toll.
The Economic and Social Research Institute (ESRI) has said that Covid-19 will result in a major shock to economic life in Ireland, one which is unprecedented in modern times.
In its latest Quarterly Economic Commentary, the ESRI said that the Government should stimulate activity in the economy, which it expects to be "very fragile" in the short to medium term, thanks to the effects of Covid-19.
It said that now would be an ideal time for the Government to invest in social housing and homes to stimulate the economy.
It expects unemployment this year to average at 17%.
Research in the commentary indicates that young workers and those living outside of Dublin have been most heavily impacted by unemployment as a result of Covid-19.
It predicts that all aspects of the economy will be considerably affected, with significant declines in consumption, investment and exports of goods and services.
Consumer spending is expected to fall sharply by 13% in the short term.
In what makes for a pretty bleak read overall, the research claims that difficult choices will have to be made, and that not all firms will survive.
You can read the entire report in full here.