Irish economy to shrink 4% after ‘hard Brexit:’ report
The Irish Taoiseach Enda Kenny | Dan Kitwood/Getty Images
The Irish economy would lose up to 4 percent in GDP if the U.K. left the EU without a trade deal with the bloc and had to rely on World Trade Organization membership instead, according to a study commissioned by the Irish government.
According to analysis by the Economic and Social Research Institute, released Monday, a “hard Brexit” would cause unemployment to rise by 1.9 percent and salaries to go down 3.6 percent over the next ten years, Reuters reported.
The Irish economy would suffer mostly because of a decline in British export demand.
If Britain were to remain a member of the European Economic Area, the report estimated Irish GDP would be around 2 percent lower ten years after Brexit, compared with if the U.K. stayed in the EU.
The Irish Department of Finance has said it expects growth in 2017 to be at 3 percent, 0.5 percent lower than previously expected, according to the Irish Times.