AIB chief economist anticipates 'short but sharp' Covid-19 recession

AIB chief economist anticipates 'short but sharp' Covid-19 recession
AIB's survey shows the biggest drop-off in business activity in one month recorded in 20 years of the poll. File picture.

AIB's chief economist said the pandemic recession will be "short but sharp".

The bank has released a survey of firms in the Irish service sector today.

It shows the biggest drop-off in business activity in one month recorded in 20 years of the poll.

But AIB's chief economist Oliver Mangan said we should see a very rapid economic rebound when restrictions are lifted.

He said: "You would expect that. There is a pent up demand here and you have to take into consideration the measures put in place by the Government to support household incomes, to support businesses, not just through the next 2 or 3 months but to lay the foundations there for a strong rebound in activity.

"So literally the households have the wherewithal or the money to go out and spend when the restrictions are lifted and have the confidence to do so also.

"Short but sharp is what we are saying for this recession.

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