Northern Ireland's economy could shrink by around 11% in 2020, according to a report predicting an even greater economic hit than expected.
Danske Bank said it is revising down its earlier forecast for a 7.5% slump as a result of the impact of coronavirus pandemic and lockdown.
And the unemployment rate could reach over 5.5%, compared to a pre-Covid-19 rate of 2.3%.
It comes as economist Dr Esmond Birnie predicted that Northern Ireland is unlikely to share in the V-shaped recovery - where steep decline is followed by rapid growth - now forecast for the UK.
Danske Bank said that while the hit would be significant this year, the economy would grow 7% in 2021 - still far behind its position before the crisis hit.
It described the pandemic - and particularly the possibility of a second wave - as the biggest risk facing the economy.
Brexit was also a major threat, though the bank said it was making its forecasts on the basis that the UK and EU do reach a free trade agreement.
While it predicted some growth would even return in the third quarter, Danske Bank warned that consumers and businesses would be more cautious about spending and investment. That could limit the pace of recovery.
Chief economist Conor Lambe said: "The Northern Ireland economy is expected to experience a significant contraction in 2020 due to the coronavirus pandemic.
"The latest data shows that economic output fell in the first quarter of the year, but the fall in the second quarter is likely to be substantially larger due to the imposition of the lockdown restrictions and the temporary closure of many businesses.
"Given the ongoing easing of restrictions, the economy should return to growth from the third quarter of this year, but the recovery is expected to be gradual.
"And despite our relatively strong annual growth forecast for next year, economic output is still expected to be around 3-4% below its pre-coronavirus level in the final quarter of 2021."
Danske Bank forecast the steepest drop in activity for the accommodation and food service sector, which would be down by nearly 40%.
Wholesale and retail would fall by 27% as social distancing requirements are likely to hinder activity in businesses in the sector.
Other sectors like transport, construction and manufacturing would also experience steep declines - with conditions made more challenging by the end of the Brexit transition period early next year.
Meanwhile, Dr Esmond Birnie of Ulster University Business School has described comments by Bank of England economist Andy Haldane that the UK economy has already entered a recovery phase as "surprisingly optimistic".
Past experience suggests the Northern Ireland economy could spend some years bumping along the bottom.
After the banking crisis in 2007/08, it took the region's economy seven to eight years to claw it way back to the pre-crisis level.
Dr Birnie said there were reasons to be cautious.