Irish Taoiseach Leo Varadkar is under sustained pressure to break a Brexit compromise with Boris Johnson, following another warning about no deal Brexit.Irish consumer sentiment slumped last month to its worst level in almost six years, sparking concern ahead of an approaching no deal Brexit. There are growing concerns, following shock predictions that a no deal Brexit could lead to 100,000 job losses in Ireland.
Boris Johnson’s determination to leave the European Union with or without a deal by October 31st has rattled consumers throughout Ireland.
The latest economic figures add to claims that the British Prime Minister’s tough tactics on Brexit are beginning to produce cracks in the EU.
Irish government warnings about the potential for job losses and economic disruption that might follow a hard Brexit are causing deep unease.
The KBC Bank Ireland consumer sentiment index dropped to 77.2 in August from 85.5 in July.
This marked the second largest monthly fall since December 2012 and the lowest reading since November 2013, when Ireland was ending an international bailout.
Economists blame the latest figures on the shock prediction that up to 100,000 jobs could be lost from a no deal exit from the European Union.
This comes amid reports that Irish ministers believe that a no deal Brexit will be significantly worse than they previously expected.
There are predictions of thousands of immediate job losses in tourism and “carnage” in the fishing sector.
Cabinet members were circulated with a document on the likely implications of no deal, which left several of them taken aback by the severity of the warnings.
One minister told the Irish Times: “We’re going to have to level with people. It’s going to be a lot worse than people expect.”
They were told that 10,000 jobs in the tourism and hospitality industry were likely to be lost within the first three months of a no deal Brexit.
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KBC Bank chief economist Austin Hughes said: “It seems we are seeing a stepped and staggered deterioration in Irish consumer confidence as a full realisation of the scale of problems posed by Brexit comes into sharper focus.”
Roughly one in two consumers now expects unemployment to rise in the next year.
The Irish Central Bank recently warned that a hard Brexit would cost around 34,000 jobs over the next three years.
Employment levels could be 110,000 lower over the next decade, according to the bank’s report.
The government is expected to make further announcements about no deal planning, including the checks on imports, later this week.
Irish Taoiseach Leo Varadkar is under sustained pressure to break a Brexit compromise with Boris Johnson, following another warning about no deal Brexit. Irish consumer sentiment slumped last month to its worst level in almost six years, sparking concern ahead of an approaching no deal Brexit.
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