Virus Impact Could Cut Irish GDP By 8.3%: Central Bank

Economic effects from the coronavirus crisis could cause Irish GDP to lose more than eight percent and prompt a sharp rise in unemployment, the republic's central bank warned Friday

Dublin, (UrduPoint / Pakistan Point News - 3rd Apr, 2020 ):Economic effects from the coronavirus crisis could cause Irish GDP to lose more than eight percent and prompt a sharp rise in unemployment, the republic's central bank warned Friday.

Studying the "initial impacts" of nationwide lockdown measures introduced by officials in Dublin, and assuming they last three months, the Central Bank of Ireland said in a statement that "GDP could decline by 8.3 per cent in 2020".

Meanwhile, unemployment is forecast to rise to 25 per cent of the workforce in the second quarter of 2020 if those receiving new COVID-19 financial supports are counted among the out-of-work.

Mark Cassidy, the bank's director of economics and statistics, said that because of the current pandemic it was "not possible to produce a conventional forecast on the outlook for the Irish economy.

"However, the near-term outlook for the economy is very unfavourable and, beyond that, the path ahead for economy depends on the path of the virus, both domestically and globally," he said.

Ireland has suffered 98 deaths from coronavirus and had 3,849 confirmed cases, according to department of health figures updated Thursday evening.

Dublin has ordered non-essential businesses to close and enacted a travel lockdown until April 12 to stem the spread of infections.

"We've had to put our economy to sleep -- our economy's in hibernation," Prime Minister Leo Varadkar said Thursday.

"I don't think it's a secret to anyone that the economic picture is very bad." Ireland's Central Statistics Office figures indicated that 513,000 residents were unemployed, receiving either jobseeker or coronavirus payments from the government in March.

In February -- when only one case of coronavirus was confirmed in Ireland -- the number of jobseekers' payments stood at just 182,000.

Ireland's government has introduced COVID-19 illness, unemployment and wage subsidy schemes.

Business and childcare supports have also been set up and 2 billion euros ($2.2 billion) has been pledged to support the healthcare system.

According to the central bank, "the total cost of the fiscal measures introduced -- including the additional health spending subject to approval -- is currently estimated at 8.2 billion euros."