Europe

Brexit: Central bank warns of job losses in event of no-deal

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The Central Bank has warned of job losses in the Republic of Ireland in the event of a no-deal Brexit.

The bank predicts 34,000 fewer jobs by the end of 2019.

In its latest quarterly bulletin, it also forecasts 110,000 fewer jobs over the next decade.

In a statement, the bank said: "A disorderly Brexit would present enormous challenges for the Irish economy.

"It would result in a loss of output and employment compared to a scenario where the UK remained in the EU."

The bank also warns that a disorderly Brexit could result in a drop in economic growth.

It said: "There would be heightened stress in financial markets and a potentially large depreciation of sterling.

'The most uncertain exercise'

"The deterioration in economic conditions and a more adverse outlook would cause firms and households to cut spending."

The bank thinks the Republic of Ireland would avoid a recession as a result of no deal, but growth would fall sharply to less than 1%.

The bank also predicts that there could be disruptions at Irish ports and airports, while Irish exports would be hit by the weak UK economy.

The central bank said that predicting the impact that a no-deal Brexit could have on the Irish economy is "the most uncertain exercise" it has ever carried out.

The UK is set to leave the European Union on 31 October.

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