There is a curious lack of symmetry in the way news about the economy is relayed in the media, particularly in Northern Ireland.

Over the past 20 years, living standards have risen, employment has expanded from 450,000 to 720,000 and unemployment has fallen to levels equalled only by a handful of other global economies.

Granted, this success has been gradual and it did not attract the kind of feverish coverage given to every twist and turn of the credit crunch and the bursting of the bubble in the property market.

While consumers are being bombarded with sometimes over-hyped stories about banking collapses, house price falls, credit tightening and rising prices, is it any wonder that they're holding back on their spending decisions?

This is not to deny that our economy is slowing rapidly; nor is it to suggest that real living standards are not declining.

Businesses and households are facing more difficult economic challenges than for many years.

Now, businesses and households in all economies are finding it tough but we in Northern Ireland need to look to the future.

The decision by Citi, hit hard by the sub prime crisis, to expand its Belfast investment in Titanic Quarter with the creation of 145 more jobs, is good news.

It marks the start of what is hoped will be a steady flow of higher end financial-services investments into Belfast.

Back in April the then Irish Finance Minister and now Taoiseach Brian Cowen announced that his government would look favour- ably upon companies based in Dublin that are facing severe shortages of skilled financial services workers wishing to establish offices in Northern Ireland.

In effect this announcement designates the whole island as a financial services hub.

A number of companies in funds administration are actively considering Belfast as a location.

This may not be the most advantageous time for financial services investments but corporate strategists tend to take a medium to long-term perspective when making such decisions.

If Northern Ireland is ever to close the wage and productivity gaps with Britain then the attraction of such investments is critical.

If, as expected, Northern Ireland benefits from spillovers from the International Financial Services Centre (IFSC) in Dublin, this should not be interpreted as a blow to the Republic's economy.

It is acknowledged that the IDA is concerned about the effects of such spillovers on Irish competitiveness but this smacks of a "little Irelander" mentality.

For decades universities in Northern Ireland have provided the Republic's high-tech industries with an abundance of ICT, business and science graduates. Indeed there is hardly a multinational company in Dublin that does not have several key management positions filled by Northern Ireland emigrants.

The Republic will benefit from the investments in Northern Ireland because corporate taxes on profits earned will still accrue to the Irish Exchequer.

In any case if IFSC client companies cannot find enough of the right calibre of employee in Dublin (or Cork, Limerick or Galway for that matter) then there must be a possibility that these companies might up sticks and pull out of the Republic.

The challenge to Northern Ireland is to deliver a quality investment location in terms of the availability of skilled operatives, high quality ICT infrastructure and a high quality of life.

Titanic Quarter looks to have all the ingredients to accommodate a financial services hub.

Business, Page 33