Yes, we are still in the midst of recession and, yes, those much hankered after green shoots are still a long way off but despite the severity of the economic downturn, it really could have been a lot worse.

That may be hard to believe when hardly a day goes by without another economic report proclaiming more depressing figures, rising unemployment, ongoing recession, soaring insolvencies but, as today’s Ernst & Young Economic Eye reveals, Northern Ireland has been spared from the worst.

The recession could have even more severe had the province not been cushioned by a large public sector and a weaker pound attracting a tidal wave of consumers over the border from the Republic.

So far the huge public sector here has escaped the redundancies that have already impacted on the private sector and it has also evaded the public sector cuts implemented across the border.

Also the weakness of the pound (today one pound is worth just €1.11) has been a blessing for many retailers particularly in the border towns of Newry, Londonderry, Enniskillen, even Belfast has benefited. Sales of alcohol here have soared by 30% as shoppers flock from the Republic.

Our lower rate of VAT, currently 15% compared to the Republic’s 21.5%, also provides added value for our Southern counterparts.

Those millions of additional euros/pounds being pumped into the local economy has protected thousands of jobs in the retail sector and their suppliers.

However, while every cloud has a silver lining as this latest economic report warns we are not out of the woods yet. The local economy is forecast to shrink further and recovery will be prolonged.