Belfast Telegraph

Economy will grow but it will be little by little

By David Elliott

Mixed economic news yesterday. PwC said the Northern Ireland economy will return to growth, all 1.2% of it, in 2013.

That'll come as a relief to many, particularly as it comes after years of contraction with a fall of 0.5% expected in 2012.

On the downside we're at the lowest end of estimates of all the UK regions but when you consider the average is around 1.8% growth in 2013 then we're not far off the pace. Of interest for all of us in the PwC report is the expectation that we're to benefit from the recent fall in inflation which is helping put more disposable income in our pockets and encouraging us to head to the shops more often.

But much will depend on both commodity and oil markets which have been dictating our weekly spend over the last few years. Further shocks to the food supply chains, such as the drought in the US Midwest which saw wheat yields plummet, could drag inflation higher once again.

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