Four things that could help Ireland escape from the Covid-19 recession

Smart Money: Major reports from IFAC and the ESRI point to what might come next

The non-food retail sector is among those is real trouble as a result of Covid. Photograph: Dara Mac Dónaill

The non-food retail sector is among those is real trouble as a result of Covid. Photograph: Dara Mac Dónaill

We are in the biggest downturn in Irish economic history. But the Irish Fiscal Advisory Council (IFAC) in a landmark report this week said we might get back to our pre-crisis economic position in just two to three and a half years. That compared with the 11 years it took to recover from the crash of 2008. So what would it take to get us out of the Covid-19 recession? Policymakers will be walking a tightrope and here are the vital factors.

1. The path of the virus:

This is obvious, of course, but what we have now from the latest IFAC and ESRI reports are a range of possible scenarios, based variously on relatively optimistic and pessimistic expectations.

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