Ireland could be set for largest recession in history if a second lockdown is needed

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Just under 2 in 5 people could be unemployed by the end of 2020 if a second lockdown is needed to suppress Covid-19.

New research from the ESRI has found Ireland is on course for it’s largest recession in history.

It forecasts GDP to fall between 8.6% in its best-case scenario or to over 17% if restrictions need to be re-introduced.

Conor O’Toole from the ESRI says the impact on the labour market will be ‘stark’.

“Naturally, it has shot up as the restrictions kicked in late March and we’ve seen the very high levels of income supports and unemployment that has occurred in the economy in April and into May.

“In the severe scenario, we see it at approximately 20% and then it will come down to about 15%.”