Ibec sees €11bn in extra savings promoting recovery but unemployment rate to stay high in early 2021        

Ibec chief economist Gerard Brady, Ibec director of policy and public affairs, Fergal O' Brien and Ibec president Anne Heraty. Picture Gary O' Neill

Business group Ibec sounded an upbeat message over "the resilient" Irish economy, predicting some €11bn in Covid-19 household savings will help boost recovery next year but warned unemployment will remain at an elevated level before the rollout of vaccines helps those parts of the economy worst hit by Covid-19.

In its final economic report for the year, Ibec forecasts that unemployment, which includes people on the pandemic unemployment payment, or PUP scheme, will average 10.3% through 2021.