The European Commission has said the outlook for the Irish economy is "highly uncertain" and that risks are "elevated". In a report published today, the Commission notes that Ireland's public finances were in "a position of strength" at the start of this year.
However, the impact of the Covid-19 pandemic and the cost of the measures put in place to support the economy have contributed to a large government deficit and increased debt.
Uncertainty over Brexit and the future of corporate tax revenues also remain as risks. In today's report, the Commission advised Irish banks to prepare for increased levels of bad loans.