The long-run economic impact of Brexit on Ireland will be influenced by the nature of the withdrawal agreement between the EU and the UK and the subsequent evolution of both economies. The eventual macroeconomic impact for the Irish economy will reflect the extent to which the exit arrangements bring about any change to the free movement of goods, services, capital and labour.
Trade, FDI and the labour market are the key channels for the macroeconomic effects of Brexit. Any agreement which keeps the UK access to the single market largely intact would have a more limited impact but the scale of the impact could be much more significant under a more restrictive agreement.