The ESRI is predicting that Ireland's economy could be facing the largest contraction recorded in an industrialised country since the Great Depression in the 1930s.
In its latest quarterly commentary, the economic think tank says the downturn that is currently gripping Ireland will be worse than previously anticipated.
It says it expects the economy to contract by around 14% between 2008 and 2010.
It is also predicting that unemployment will reach almost 17% by 2010, leaving one-in-six people without a job.
Fine Gael finance spokesman Richard Bruton says the analysis in indescribably depressing and a damning critique of the Government's economic incompetence.