Economic impact of Covid-19

A new analysis suggests Garden County could escape the worst of the economic impact of Covid-19.

The ‘Covid-19 Regional Economic Analysis’, produced by the Regional Assemblies of Ireland, attempts to identify which areas of the country could be hardest hit by the coronavirus crisis.

The report predicts Wicklow could be among the counties least likely to suffer as less than half (46 per cent) of its commercial units are in sectors heavily affected by public health restrictions.

The analysis looked at the total number of commercial units operating in the economic sectors exposed to significant disruption due to Covid-19 as a proportion of an area’s total commercial stock as at September 2019. The types of businesses include hotels, restaurants, childcare, construction, hairdressing and arts and recreation. Businesses designated as essential services such as supermarkets and pharmacies were excluded from the analysis. Nationwide, the analysis suggests that urban areas are more insulated against the risk due to the presence of professional sectors, which were more likely to allow for remote working.

The analysis found that rural and coastal towns are particularly exposed to the risks of severe economic disruption. Enniskerry, Rathdrum and Arklow could be particularly affected as they have a higher proportion of businesses are in sectors likely to be affected. Bundoran, Co. Donegal, Strandhill, Co. Sligo and Courtown, Co. Wexford were most at risk of economic disruption due to the pandemic.

The report highlights that regional differences may affect any economic recovery and argues that new policies to encourage recovery need to be designed to take regional variations into account.