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No precedent: Central Bank's Makhlouf gives virus warning

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Warning: Central Bank governor Gabriel Makhlouf said all EU governments need to play a part in mitigating the Covid-19 impacts

Warning: Central Bank governor Gabriel Makhlouf said all EU governments need to play a part in mitigating the Covid-19 impacts

Warning: Central Bank governor Gabriel Makhlouf said all EU governments need to play a part in mitigating the Covid-19 impacts

The economic crisis caused by Covid-19 "may have no precedent in known history", according to Central Bank Governor Gabriel Makhlouf.

In a post on the Central Bank website, the Governor, pictured right, made a stark assessment.

"I have yet to find examples of economies voluntarily closing down in the way so much of the world has chosen to. Earthquakes and other natural disasters stop economic activity but they tend to have a localised impact and, of course, they are not voluntary. And wars tend to change the focus of economic activity, rather than stop it entirely," he wrote.

Unemployment may rise to almost 25pc over the April-June period, he said.

All EU governments and institutions need to play their part to ensure the impact of the shock is no longer or deeper than needed, he wrote.

Irish Independent