Warning over 'two speed' Irish economy when Covid-19 crisis ends

The economy continues to operate at two speeds with the multinationals boosting expansion while domestic-facing firms are faltering, Goodbody chief economist Dermot O’Leary has said.
Warning over 'two speed' Irish economy when Covid-19 crisis ends

The economy continues to operate at two speeds with the multinationals boosting expansion while domestic-facing firms are faltering, Goodbody chief economist Dermot O’Leary has said.

His comments come as new numbers showed multinationals helped drive GDP 1.2% higher in the first three months, as the Covid-19 crisis began to bite, but expanded by only 0.1% from the previous quarter when measured by GNP, which more accurately refelects the domestic economy.

The figures could be seen “as old news” but there are lessons for the economy when the crisis passes, he said, namely “the two-speed nature of the Irish economy” and “the importance of looking beyond GDP”.

Industry group AmCham, which represents the US multinationals, said it wants a new government to address investment issues including broadband, "pandemic proofing", and education.

Separate CSO figures showed the unemployment live register rose to 225,662 in May from 214,662 in April.

That means that a total of 1.28 million people are in receipt of some sort of Government payment during the Covid-19 crisis, including the 543,200 who are on the now revised pandemic unemployment payment and 514,700 people availing of the wage-subsidy scheme.

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