Think-tank warns possible ‘full blown financial crisis’ in the UK could hit Ireland

The ESRI also said inflation will remain high during the winter

The ESRI has downgraded its growth forecast. Picture:

Inflation is set to remain high in the coming months, and Ireland could be exposed to a UK recession, a new forecast has predicted.

New research from the Economic and Social Research Institute (ESRI) said the annual rate of inflation is expected to increase through the winter, and will average 8.1 per cent for 2022. It also warned about a deterioration in the UK economy.

“Recession risks are now rising across Ireland’s main trading partners, ...