Irish economic growth will grind to a halt and unemployment will creep above 5% this year under Italy-style quarantines to control the Covid-19 outbreak here, the Economic and Social Research Institute has projected in new forecasts.
The Economic and Social Research Institute (ESRI) is working on scenarios that take account of significant hits to the Irish economy should the coronavirus crisis lead to the Government imposing long periods of quarantine.
The economy is expanding so strongly that Finance Minister Paschal Donohoe ought to turn his back on deep cuts to personal taxes and spend even less than what will be available to him in so-called fiscal space, the Economic and Social Research Institute has said.
There is no early end in sight to house price increases and it will take “the next five, six, seven years” for new supply to come anywhere near to meeting pent-up demand, the Economic and Social Research Institute warns.
The economy will surge 6% this year and will keep growing rapidly next year too at a rate of 4.5%, while significant increases in domestic demand and for the first time in consumer spending will drive the recovery, the Economic and Social Research Institute said in its latest quarterly bulletin.
Influential think-tank the Economic and Social Research Institute has added its voice to growing chorus of commentators warning that the Government risks spoiling the recovery if it were to pump too much into the economy in its pre-election budget in October.
The Irish economy will post another year of strong growth in 2014 on the back of more robust levels of investment, combined with a recovery in domestic consumption, according to the ESRI’s spring quarterly economic commentary, which was launched yesterday.