NOTE: By submitting this form and registering with us, you are providing us with permission to store your personal data and the record of your registration. In addition, registration with the Medical Independent includes granting consent for the delivery of that additional professional content and targeted ads, and the cookies required to deliver same. View our Privacy Policy and Cookie Notice for further details.

You can opt out at anytime by visiting our cookie policy page. In line with the provisions of the GDPR, the provision of your personal data is a requirement necessary to enter into a contract. We must advise you at the point of collecting your personal data that it is a required field, and the consequences of not providing the personal data is that we cannot provide this service to you.


[profilepress-login id="1"]

Don't have an account? Subscribe

ADVERTISEMENT

ADVERTISEMENT

Covid-19 would likely cause ‘limited global spillovers’ – DoF paper

By Dermot - 09th Apr 2020

A Department of Finance document from February referred to how the Covid-19 outbreak was likely to peak in the first quarter, “with relatively limited global spillovers”.

This ‘baseline assumption’ was contained in the European Commission’s European Economic Forecast Winter 2020 and outlined in the Department document dated 13 February.

Referring again to the Commission’s forecast, the document noted that the spread of Covid-19, which has since escalated to pandemic status, was a source of “mounting concern” and spurred uncertainty around the short-term prospects of the Chinese economy. 

Despite predicting “limited global spillovers”, the document quoted the Commission’s prediction that “the longer [the outbreak] lasts, the higher the likelihood of knock-on effects on economic sentiment and global financing conditions”.

A later document on the macroeconomic impact of the virus, dated 28 February, acknowledged the growing seriousness of the situation, with the Covid-19 spread described as “first and foremost, a supply-side shock”.

The document noted that supply chains could be disrupted, including the possibility of factory closures, quarantined workers, delays with international quality inspections, and transport issues.

“Over the long-term, the costs associated with concentrating intermediate good production in a single location may lead to an unravelling of supply-chains, with adverse economic implications.”

Ireland, as a small, open, export-focused, economy was particularly sensitive to a slowdown in global growth, it stated.

Minister for Finance Paschal Donohoe recently said that the potential loss of taxation this year could be higher than €8 billion. The estimated cost of Government measures to date is also €8 billion.

ADVERTISEMENT

Latest

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT