No-deal could 'alter path of economy' in the Republic

By Cate McCurry

January 25 2019 11:00 AM

The Republic's financial regulator has laid bare the impact of the UK crashing out of the European Union, which it said could significantly alter the path of the Irish economy.

The Central Bank of Ireland published its analysis of the possible effects of a disorderly no-deal Brexit in its first quarterly bulletin of 2019.

It found that it could cause "immediate disruption" in financial markets, as well as further falls in the value of sterling which would adversely affect the competitiveness of Irish exporters.

It said that a deterioration in economic conditions could cause Irish firms to cut back investment and consumers to reduce spending.

Economic growth is also expected to decline by up to four percentage points in the first full year.

Mark Cassidy, director of economics and statistics, said: "A disorderly no-deal Brexit has the potential to significantly alter the path of the Irish economy in both the short and medium term, with a substantial and permanent loss of output."

Belfast Telegraph