Cliff Taylor: Pandemic boom gives Ireland precious room for manoeuvre

Economic rebound gives Government scope to deal with persistent Covid uncertainty

We have been looking at a K-shaped recovery, with much of the economy heading upwards while the worst-affected sectors suffer. Photograph: iStock

We have been looking at a K-shaped recovery, with much of the economy heading upwards while the worst-affected sectors suffer. Photograph: iStock

At the start of the pandemic, economists were arguing about whether a so-called V-shaped recovery was in prospect – a quick recovery after a short lockdown. Yes I know, it seems a long time ago. Then as lockdown set in, an L got some support – economies would tank and stay flat for some time. And indeed without a massive rescue programme launched by the world’s central banks, it could have got nasty.

But as the pandemic went on, with its ebbs and flows, another letter came into the frame. We have been looking at a K-shaped recovery, with much of the economy heading upwards while the worst-affected sectors suffer. Nowhere is this more apt than in Ireland, with big implications for what happens next.

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