The growing possibility of a no deal Brexit will present a very difficult shock for Ireland but is one its strongly growing economy is well-placed to respond to, Irish Finance Minister Paschal Donohoe said.

“I believe the possibility of a no deal Brexit taking place is clearly growing. It is a material risk in the way it perhaps wasn’t 12 months ago,” Donohoe told Ireland’s Newstalk radio station.

“It’s really important to emphasize that even in the scenario of a no deal Brexit, while it will pose a very difficult shock for our economy, we have an economy that is well capable of responding back to that, approaching such a challenge with more people working in Ireland than we ever have before.”