Irish economy faces challenges regardless of Brexit – DBRS
The Irish economy faces a number of challenges regardless of the outcome of Brexit, ratings agency DBRS has warned.
Recognising that a no-deal Brexit would be the most painful outcome for the Irish economy, a note from the Toronto head-quartered group said the Irish economy could be anywhere from 4pc-8.2pc smaller over the long-term compared to a no-Brexit baseline.
However, it added that a benign Brexit outcome would not eliminate, and over time may even exacerbate, existing economic challenges.
These economic difficulties include supply constraints in labour and property markets.
Such challenges could be exacerbated over the medium-term if the Brexit-related uncertainty that has loomed over Ireland were to evaporate following a benign outcome.
How the country manages Brexit will be important for assessing Irish credit fundamentals, DBRS added.
"DBRS’s future assessments of Ireland’s credit quality will consider how effectively authorities use fiscal and macroprudential policy tools to manage the eventual Brexit outcome," the agency said.