an Outbreak of coronavirus can lead to negative consequences for global growth in the short term, said the head of the Central Bank of Ireland, Gabriel Makhlouf, reports The Irish Times.
According to him, although it is premature to draw any conclusions about the impact of the virus, however, any impact on the Irish economy will be felt both through direct and indirect channels.
“From the decline in demand for Irish exports to China to a negative impact on overall world demand and, consequently, Irish exports. Since China accounts for a large and growing share of world production, we expect disruptions in the Chinese economy will have an impact on Ireland”, he said.
Mahluf also stressed that the prospects for the Irish economy in the short-term future remains positive.
“Probably some slowing of domestic demand growth, while some significant risks remain”, he said.
Chief economist of the European Central Bank (ECB) and former Governor of the Central Bank of Ireland Philip lane at the same event said that he expects that the coronavirus can cause quite a serious blow in the short term, but the impact of the virus may be relatively minor in the long term.