Today’s forecasts from the Department of Finance on the impact of a ‘no deal’ Brexit on the Irish economy bring home the real life impact such a scenario would have on Ireland, according to Fianna Fáil Spokesperson on Finance Michael McGrath TD.
Deputy McGrath commented, “First of all, I welcome the fact the Minister has published these forecasts. Last week, I called on him to do so because it is important the public are not kept in the dark on what the impact of a ‘no deal’ Brexit would be. The fact unemployment would be predicted to rise by 2% (likely to be an increase of between 40,000 and 50,000) underlines the stark reality of what is at stake.
“It may well be the case that a ‘no deal’ Brexit would have an even greater disruptive effect on the Irish economy than predicted. It is not necessarily the case that the economic model used by the Department fully captures the impact such a scenario would have on human behaviour. It is inevitable that in a ‘no deal’ scenario where uncertainty is rife, many investment decisions would be stalled and consumer sentiment would take a major hit.
“It is also worth pointing out that the detrimental impact of a ‘no deal’ Brexit would not be evenly felt throughout the country. The further into the regions you go, the greater the impact would be given the importance of agriculture and the overall food sector in those areas. The preparations being made by government for a ‘no deal’ Brexit must reflect this reality.
“As the Brexit drama plays out in Westminster, the outcome in the coming two months will have a critical bearing on the direction of the Irish economy and the quality of lives of our citizens in the years ahead,” concluded McGrath.