This year the economy will decline by 8% and grow again by 6% next year, a new report published by the European Commission says.
Britain’s exit from the European Union and changes to international taxation will have a particular impact on Ireland’s situation, it is said.
The report also states that the number of people out of work will rise to 7.5% this year, but will return to normal at the end of 2021 when the crown virus crisis erupts.
Finance Minister Paschal Donohoe today announced changes to the Wage Subsidy Scheme to make it more effective for those on low incomes.
He defended the scheme, saying that 400,000 people have kept their jobs.