Divide between rural and urban areas ‘likely to deepen over wages, house prices and jobs’

BREXIT is set to deepen the rural and urban divide in Ireland, according to economists.

Two leading economists – Kieran McQuinn of the ESRI and Tom Healy of the Nevin Institute – outlined the impact the exit of the UK will have on the capital and other regions. Mr McQuinn told an Oireachtas committee that the economic impact of Brexit will likely see wages fall and unemployment rise, which will lead to a fall in house prices.

However, prices are more likely to drop in rural Ireland, while demand could increase in the capital due to people moving to Dublin to work in the financial and other sectors post-Brexit.

Meanwhile, Mr Healy warned that the Border region, the south-west and west will take a much bigger hit due to the impact on the agriculture industry and the adverse affect the exit is going to have on Northern Ireland, which may spill over.

Mr Healy said the potential for significant job losses – which may be much higher than the 20,000 figure that has been mooted – increases the risk of social and economic inequalities developing across Ireland.

The supply of low-skilled workers could be affected, meaning wage inequalities could be increased, Mr Healy added.

On the other hand there is the potential Dublin may do “well” out of Brexit.