Economist Colm McCarthy has warned the recovery of the Irish economy post-Covid-19 is linked to external factors, especially to the swift recovery of the US economy.

Speaking on RTÉ's The Business, Mr McCarthy said he would be more pessimistic than the ESRI, which warned that a severe period of economic disruption should last 12 weeks and then be followed by a period of sustained recovery over the winter and into early next year.

He said he thinks there is a "distinct possibility it could take longer than that".

Mr McCathy said Ireland was pulled out of the financial crash in 2012-2013 by foreign demand.

He expressed concern that without the same "bounce back" in external demand, a recovery could be slow.


He said if the US economy is badly affected Ireland will be impacted as it is "more exposed to the US economy than any other country in the world".

The economist said it is "extraordinary" for President Donald Trump to put an end date of 12 April on restriction measures given the type of virus it is.

Mr McCathy said the European Central Bank has a key role to play and must show a willingness to stabilise the sovereign bond market in Europe.

He said the ECB needs to move quickly to dispel any fears of eurozone fragmentation.