ESRI: Government may not need to borrow billions more despite lockdown; PUP bill tops €6bn

Extended lockdown will mean that unemployment will not return to its pre-pandemic level of below 5% 'until at least 2023', mainly because the shutdown of building sites has lasted longer than most anticipated

People walk along a near empty Grafton Street in Dublin. The extended lockdown will mean that unemployment will not return to its pre-pandemic level of below 5% 'until at least 2023. Picture: Niall Carson/PA

The Government was given some welcome news as a leading expert predicted it may not automatically need to borrow many billions more this year despite the level 5 lockdown extending longer than anticipated. 

Kieran McQuinn, research professor at the Economic and Social Research Institute, said the ESRI was unlikely to increase its own forecast by a significant amount for a Government budget deficit of about €18.5bn this year.