Huge exposure to economic impact of Covid-19 crisis
Wexford is potentially one of the worst affected counties in Ireland in terms of the economic impact of Covid-19 restrictions, according to an analysis published by the Three Regional Assemblies of Ireland.
The county is placed sixth in a list of areas with the greatest Covid-19 exposure rate, calculated by the number of commercial and business premises which were operating in the sectors most affected by pandemic restrictions, as a proportion of total commercial properties in September 2019.
The ‘Covid-19 Regional Economic Analysis’ shows that Wexford has an exposure rate of 50.4% with 2,836 commercial premises in the sectors most likely to have experienced the greatest disruption, below Kerry which has the hightest rate at 53.8%.
The hardest-hit sectors include construction, retail, accommodation/food services, entertainment/recreation, child day care, hairdressing and physical wellbeing activities which have been unable to operate remotely.
The Covid-19 Exposure Rate in Gorey was calculated at 55.2%, in New Ross 52%, Wexford town 49.4%, Enniscorthy 49.1%, Rosslare 54.9% and Bunclody/Carrickduff 43.8%.
The report reveals that popular coastal areas and rural based towns, have been particularly affected including Courtown Harbour/Riverchapel/Ardamine which has an exposure rate of 66.2%, based on the number of commercial units in the sectors unable to operate due to Covid-19.
The Regional Assembles, representing local authorities in Ireland, undertook the study in order to get a clearer picture of how the fall-out from Covid-19 may be felt in counties, towns and cities areas across the country.
Based on Department of Finance estimates, the Irish economy is projected to decline by 10.5 per cent this year, with unemployment predicted to rise to 22 per cent in the second quarter of 2020 and public finances expected to record a deficit of about €23 billion.
The report set out to identify which geographical areas in Ireland are more likely to be exposed to economic disruption caused by the necessary measures to prevent the spread of the coronavirus.
Using the GeoDirectory commercial database, and the NACE (economic activity) codes allocated to commercial units as of September 2019, the Regional Assemblies of Ireland identified each geographical area’s reliance on the sectors that are likely to be severely affected by the public health measures needed to curtail the spread of Covid-19.
The purpose is to inform policy makers at a local, regional and national level in order to assist the eventual process of economic recovery throughout the entire country. allowing them to identify the degree of economic resilience in different areas.
An area’s ‘Covid-19 Exposure Ratio’ represents the total number of its commercial units that were operating in the sectors likely to be worst affected by the Covid-19 outbreak.
The higher this ratio is for an area, the more likely it is to be exposed to significant economic disruption.
The report states that while many of the affected sectors should gradually improve when the current restrictions are lifted, it is important that policy makers are aware of the potential economic exposure of different regions and towns within the country.