The Economic and Social Research Institute has described Covid-19 as a major shock to economic life which is unprecedented in modern times.
In its latest quarterly economic commentary, the think-tank urges the Government to invest in social housing and retrofitting homes to stimulate the economy.
But it warns this necessary investment will increase the deficit, which it expects to be around €27 billion this year. So too will any extension to the Pandemic Unemployment Payments.
The ESRI anticipates activity in the economy to be "very fragile" in the short to medium term. It expects unemployment this year to average 17%.