EU: New Covid-19 lockdown harms Ireland rebound prospects

Unemployment to remain at elevated levels

A very quiet St.Patrick’s street, Cork on the first day of the new level 5 restictions. Picture: Dan Linehan

The latest six-week Covid-19 lockdown has hit the prospects of a swift recovery in Ireland and unemployment will remain at elevated levels for a number of years, even as the multinationals insulate the State finances from the worst of the pandemic, according to the latest economic outlook from the EU.

In EU-wide autumn forecasts, the European Commission projects Ireland, along with Lithuania, will suffer the smallest economic hits from the pandemic in terms of GDP this year, but in terms of the number of people losing their jobs, it sees Irish unemployment rising close to the eurozone average.