Financial security for three months, but are we prepared for extended downturn?
Research compiled by communications and market research firm Cicero/AMO has identified that Ireland is happy with the current management of the COVID-19 crisis, but questions are being asked about what happens next.
Mullingar native Aideen Ginnell, Ireland Director with Cicero/AMO, says that there is a bubbling undercurrent of public concern about how sustainable the Government’s financial response to the crisis is over the long term.
The research, conducted using fieldwork specialists Toluna, surveyed 525 Irish adults over the age of 18 on a nationally representative basis between March 25 and 31.
The study looked at the challenges facing Irish adults now, and unsurprisingly identified the health of a family member as the single biggest concern. However, the findings also suggest that one in ten are most concerned about keeping their job and almost 15% are concerned about keeping their house.
The research also identified that most households expect the economic downturn to last at least a year, with 40% believing it will be up to two years before we see some normality in the market.
Finally, the research identified that while there is confidence in the current caretaker government, with over 41% saying they are very happy with their handling of COVID-19 so far, this number falls when asked about long-term confidence with one in five saying they are not confident in their ability to manage long-term.
“This is an extremely worrying time on all fronts. Working with Toluna, we set out to capture the confidence of the Irish public in the current government, in the measures being taken and on the outlook for the economy,” Ms Ginnell said.
“We also wanted to identify how vulnerable people are to the economic shock and to what lies waiting past this three-month payment moratorium.
“Unsurprisingly, health is the single biggest concern right now with economic impact following. What is concerning is the capacity for Irish households to sustain economic hardship for an extended period of time with over a third stating that they only have enough savings to safeguard them for four weeks. Also, the fact that one in ten is concerned about keeping their job, highlights how vulnerable many sectors are right now.
“Undoubtedly, the scale of the public sector intervention is unprecedented. The sums involved in taxpayer rescue packages exceed any form of direct rescue witnessed by the State. This is all very important but what must be noted is it is for a certain period of time only. Each has a three-month expiration.
“And even if the Government felt the need to extend this period – each extension brings consequences for the economy into the long term.
“The risk we face is putting all our efforts into dealing with the here and now to only successfully come out of that challenge and head-first into a melting economy. This, we know, can have devastating impacts on the most vulnerable in our society.”