The Economic and Social Research Institute has said if more "extreme restrictions" in relation to Covid-19 can be avoided next year and a Brexit trade deal can be reached, there should be a strong recovery in the economy.
In its latest Quarterly Economic Survey, the ESRI also finds the main impact of the pandemic has been on workers in low paid jobs.
The ESRI expects the economy to rebound strongly next year by 6.3%. But it cautions that if Brexit happens without a trade deal, growth could be cut to 3.3%.
Its latest economic survey also highlights the divergent experiences of Covid-19 in the Irish economy. Demand for medical and pharmaceutical goods rose during the pandemic, supporting the export sector, but consumer demand collapsed by