Galway is the city most exposed to the economic impact of Covid-19

The city of Galway is the highest risk urban center in Ireland due to the economic impacts of the COVID-19 pandemic, according to a report by the North and West Regional Assembly.

The Finance Department has forecast that the Irish economy will contract approximately 10.5% this year as a result of COVID-19 and the public restrictions used to combat it, while unemployment will rise to 22%.

This prediction led the three Regional Assemblies to prepare a COVID-19 Regional Economic Analysis to identify the areas that will be most affected by the restriction imposed during this pandemic.

The purpose of compiling this report was to inform policymakers at the local, regional and
National level of the scope of economic exposure and resistance in different regions of Ireland.

Cathaoirleach for the North and West Regional Assembly, Cllr Declan McDonnell recognized that of the three regions, the North and West region had the highest “COVID-19 Exposure Ratio” of the companies that are most at risk.

The analysis showed that 48.6 percent of companies in the region are operating in the most affected sectors, probably affected by the crisis.

While County Galway doesn’t fare too badly in this analysis, in better shape than many counties in the west, the same is not true for the city of Galway.

Many of the city’s wholesale and retail services, accommodation and food, and arts and entertainment sectors are likely to be severely affected by this crisis, causing “significant distress” to the local and regional economy.

The city of Galway and its suburbs have an exposure rate of 46.1% based on the data collected for this report, higher than Waterford (45%), Limierick (44.9%), Cork (40.1%) or Dublin (38.4%).

Altogether, there are 1,532 businesses in Galway that are in sectors that are doing worse in the Covid-19 crisis.

But the city of Galway is far from being the worst city in the county. Among the 15 most vulnerable settlements in the country is Clifden, where 58.1% of companies are in vulnerable sectors.

“It should be noted that the potential duration of this economic impact is unclear and largely depends on the continuation of current restrictions and the broader international context,” the report says.

But it also includes a comforting note that “however, as restrictions are lifted, many of these sectors should gradually improve.”

Ireland will begin to pull out of the Covid-19 blockade on Monday, May 18, gradually lifting the restrictions in five phases.

Food industry companies such as cafes and restaurants are not expected to reopen until June, while pubs will have to wait until August under the current plan.

Many in the hotel industry have warned that without government support, many companies will be forced to close permanently with existing social distancing restrictions.