The Irish economy could contract by up to 13.1% this year if the Covid-19 shutdown is extended to late summer.
That is according to one scenario modeled by EY Ireland which would foresee the loss of 318,000 jobs.
In a base scenario with extreme disruption ending in May, it projects that GDP will fall by 7% with the loss of 177,000 jobs.
EY said that estimating the potential economic impact of the pandemic is extremely difficult due to the uncertainty around the length of the crisis and the evolving nature of the response.
Job losses are projected to be 177,000 in EY's base case scenario, but over 450,000 jobs are expected to be either lost or furloughed during the most severe phase of the pandemic as businesses are shut.
These numbers rise to 318,000 and 675,000 respectively in the prolonged outbreak scenario.
EY said this is in stark contrast to its pre-Covid-19 figures which had forecast an additional 38,000 jobs this year.
"The human cost of the COVID-19 crisis is sadly rising every day and the economic cost is rising as well," Professor Neil Gibson, Chief Economist for EY Ireland said.
Professor Gibson said the effect of this pandemic will be felt for years, if not decades due to the scale of borrowing required to see economies through the most virulent phase of the outbreak.
"Early estimates from the EY Economic Eye model suggest a recession is certain, and a depression is possible if the economic restrictions need to be in force for a protracted time," he added.
