The NERI's latest Report Series no 10 paper was written by NERI Co-director, Dr Tom McDonnell. Covid-19 has caused unprecedented disruption to societies and economies across the globe, but the economy is now on the cusp of a rapid and sustained recovery. Even so, formidable challenges and transitions lie ahead.
We are now well almost one and a half years into the worst global pandemic in a century. Millions of people across the globe have lost their lives while tens of millions more lost their livelihoods.
The measures taken to contain the virus, while justified, have either interrupted or stopped entire sectors of economic activity both in Ireland and across the world. Indeed, the pandemic has permanently changed the future trajectory of the global economy with the acceleration of digitalisation and remote working. The pandemic has also brought the indispensability of public services and the welfare state into sharp focus. This insight may have implications for the future trajectory of fiscal policy.
The zero carbon transition will further transform the economy in the years ahead. This transition will entail significant disruption for certain sectors and regions but also great opportunity for the Irish economy as a whole.