IRELAND will suffer a severe and immediate hit in a sudden, no deal Brexit scenario, it has been warned.
Central Bank Governor Philip Lane said there would be instant disruptive effects, especially in the border region.
Professor Lane said the Central Bank's modelling work suggested a disorderly Brexit could reduce the growth rate of the Irish economy.
He was speaking at the 2019 European Financial Forum in Dublin Castle yesterday.
"A sudden, no-deal scenario would have immediate disruptive effects that would permeate almost all areas of economic activity," he said.
"The agri-food sector would be disproportionately affected, with a corresponding outsized impact on rural regions, especially near the border."
Professor Lane further warned that a further significant depreciation of Sterling against the Euro would adversely affect firms dependent on the UK market.
However, he said because the work that the Central Bank and others have undertaken, the immediate cliff-edge risks of a hard Brexit had been addressed largely.
The forum also heard that Brexit would lead to a fundamental shift in Europe's financial services sector regardless of the terms of the UK's withdrawal from the EU.
"Of course there'll be lots of trade between the EU27 and the UK after Brexit," he added.
"But there's going to be a lot more trade between the EU27."
