ESRI: 'Groundhog day' should Omicron flare and derail exceptional recovery

Any more severe restrictions could stifle rebound of the economy and hit certain sectors severely

Ireland’s leading economics think tank details “a very robust” recovery in the domestic economy, citing the much better than anticipated fall in Covid-driven unemployment, higher than expected levels of household spending, and the healthy state of the public finances despite the scale of the economic crisis over the last 21 months.

The Irish economy is facing a “Groundhog day” as the Omicron variant again places a huge uncertainty over jobs in cafés, pubs, hotels, and tourism even as the domestic economy roars back, according to the Economic and Social Research Institute (ESRI).

In its latest major economic commentary, the ESRI said that hanging over its outlook for an exceptionally strong recovery next year is the threat that Omicron could lead to a new round of severe restrictions.