New official projections see Irish unemployment at 10.7% in 2021    

GDP will contract by 2.5% this year and rebound by 1.4% in 2021

Minister for Finance, Paschal Donohoe TD during a media briefing on the macroeconomic forecast for Budget 2021, following endorsement by IFAC at Government Buildings Dublin. Picture:Gareth Chaney/Collins

The economic fallout from the Covid-19 crisis is less severe than once feared, but unemployment will remain at elevated levels for some time to come, new official forecasts suggest. 

Finance Minister Paschal Donohoe has unveiled the Government's economic outlook showing that GDP will contract by only 2.5% this year and rebound by 1.4% in 2021, as the activities of multinationals help shield Ireland to some part from the worst of the economic storm.