Northern Ireland's economy would be devastated by a no-deal Brexit, with an impact so severe it is difficult for civil servants to “set a limit” upon it, according to a new report from its economy ministry.

The document said leaving the EU without a deal in place would have a “profound and long-lasting impact on its economy and society”, including a “sharp increase” in unemployment as 40,000 jobs would be put at risk.

The fresh analysis follows a range of dire warnings over the impact of leaving the EU without a deal in place for communities and businesses in Northern Ireland. Previous estimates from the UK Government have suggested it could lose up to 9.1pc of its economic output compared to remaining in the EU.

The imposition of EU tariffs and non-tariff barriers, which Brussels has committed to putting in place in the event of no-deal, will simply be too restrictive for NI businesses to export to Ireland.

These levies and red tape would undermine the competitive edge of businesses north of the border so profoundly that any Irish or EU level intervention will be too little to mitigate the impact, the report said.