DAVY VIEW

On Friday (September 18th), the Irish government announced fresh COVID-19 restrictions for the capital Dublin, shutting down restaurants and bars and imposing restrictions on travel. Dublin and the Mid-East region account for 50% of GDP and 45% of employment – so the impact on activity may not be insignificant, particularly in the hospitality and services sectors. The news supports our view that there will now be a more gradual labour market recovery after heavy falls in the unemployment rate in July and August.