New government projections say Irish GDP will fall by more than 10% this year, with unemployment to peak at 22%.
Finance Minister Paschal Donohoe has warned 220,000 jobs will be lost this year - saying it's clear the economy is "now in the midst of a severe recession".
Government Chief Economist John McCarthy has said the coronavirus crisis will lead to the "deepest recession since the 1930s" internationally.
It's projected that there will be a recovery in 2021 with a 5.5% increase in employment, while the numbers out of work to fall below 10% next year.
However, the economy will not return to where it was at the start of this year until 2022.
The predictions are based on restrictions lasting for three months, and GDP could fall by as much as 15% if they last until the end of the year.
Some grim figures coming from Dept of Finance.
- GDP to fall by 10.5% this year
- Unemployment to peak at 22%
- Economy won't return to where it was until 2022
- Govt deficit of €23bn
- 220,000 jobs lost in 2020
— Seán Defoe (@SeanDefoe) April 21, 2020
Minister Donohoe said: "Given the extraordinary economic situation that now confronts us, we have kept the assessment to the current year and next year.
"We now expect growth domestic product to contract by around 10.5% this year.
"We are now clearly in the midst of a severe recession, both domestically and globally."
He said the figures released today are a scenario "rather than a forecast, per se", and are based on an assumption that the current coronavirus restrictions will be gradually eased in the coming months.
He said: "If containment measures are not lifted... then the economic effect will clearly be more severe."
Minister Donohoe insisted the economy will recover, but warned that some sectors will recover slower than others.
He also pointed to the economy has gone from "effectively full-employment in the early part of the year to exceptionally high levels of unemployment".
Figures released yesterday showed that more than one million people are receiving some sort of State income support amid the current crisis.