Ireland’s public spending mitigated against ‘worst effects’ of Covid-19

Researchers of the bank’s latest economic letter, Covid-19 and the Public Finances in Ireland, which was published on Monday. File picture: PA Wire

Ireland’s “significant” increase in public spending since the onset of Covid-19 mitigated against the “worst effects” of the pandemic on the economy, a new report has found.

The country’s spending was the second largest in the euro area in the first three quarters of last year, but protected households, firms and the broader economy from the negative impact of the virus, the Central Bank document showed.