The lockdown may squash the virus but what will it mean for Ireland's economy?

Smart Money: This lockdown is likely to go on for months and be unwound slowly

The evidence is that while the impact of this lockdown may not be quite as severe in terms of numbers out of work in the key sectors as the first one, it may not be far off. Photograph: iStock

The evidence is that while the impact of this lockdown may not be quite as severe in terms of numbers out of work in the key sectors as the first one, it may not be far off. Photograph: iStock

The return of Level 5 restrictions means a hit to the economy – and it will be more severe than when restrictions were tightened in the autumn. Lockdown Three may not be quite as severe as Lockdown One, but it is not far off. And it looks likely to go on for some months and to be very gradually unwound.

While economic and public health goals are both met by getting on top of Covid-19, shutting large parts of the economy obviously creates significant costs for the wider economy and the public finances in the short term. What does the evidence show?

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