Davy Stockbrokers has forecast a deep and lingering impact of Covid-19 on the Irish economy and warned that the outlook looks very uncertain.
Davy's new economic outlook predicts that the economy will contract by 10% in 2020 and rebound by 7% in 2021. It has pencilled in a contraction of 20% in the second quarter of the year, with the economy still precdicted to be 10% below pre-Covid-19 levels by the end of 2020 and 5% below by the end of 2021.
The country's unemployment rate is predicted to peak at 25% in the second quarter of the year before falling to average 12% in 2021.
Davy also forecast that consumer spending will slump by 12.5% in 2020 and will then grow by 7.3% in 2021. Investment spending will also fall sharply, partly due to