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Northern Ireland’s economy ‘to defy the global slowdown
Wednesday, 6 August 2008
The economy in Northern Ireland is expected to grow by close to 2% this year despite the continuing global economic downturn and credit crunch, says a new report.
In contrast, the Irish Republic faces the first recession in a quarter of a century.
After continuing growth since 1983 the economy there is forecast to contract by 0.4% compared to the growth of 5.3% enjoyed in 2007, said the report.
The Department of Enterprise, Trade and Investment’s latest Quarterly Economic Review forecast "relatively robust" growth of 1.8% for Northern Ireland.
However that is well down on the 3.5% achieved in 2007.
The report said: "The current global economic conditions will have an inevitable impact on Northern Ireland’s economic performance.
"Although growth is forecast to decline in 2008, it is expected to remain relatively robust at around 1.8%.
"A strong labour market and recent success in foreign labour market and export markets, should help limit the impact of the slowdown on the economy."
Economy Minister Arlene Foster said that although businesses faced a range of economic difficulties, the Northern Ireland economy was reasonably well placed to "weather the storm".
Commenting on the review she said: “At a time when firms are already suffering from the fall-out of the ‘credit crunch’, rising oil and energy prices are particularly unwelcome. Moreover recent reductions in house prices have dampened consumer confidence."
But she said that despite the difficulties the local economy was still forecast to grow in 2008.
"The strength of the labour market, where the number of employee jobs stands at an all time high of 722,120, coupled with increased investment in R&D, will help many local firms retain their competitive position," she said.
The minister said while businesses in key investment markets in the US and Europe were feeling the impact of the slowdown, recent announcements — such as Bombardier Aerospace’s half a billion investment in Northern Ireland — illustrated overseas investors continued to have confidence in the economy.
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Considering the large number of redundancies which have been made in the construction industry this year already and with many more to go - the report seems to be remarkably optimistic. We do not share in this optimism and the Assembley's lack of any significant decision making and implimantation of infrastructure projects is critical. An example is the long awaited decision on the Maze/Long Kesh which has turned into something of a debacle.
The recent announcement of the A26 Frosses improvement will take up to 5 years to get off the ground when it should be on a fast track process. Urgent intervention is required by the assembly to prevent further serious job losses in this industry.
Posted by N Quinn | 12.08.08, 10:52 GMT
Exactly how does the strength of the Labour market bode well for the Northern Irish economy?
How many of these jobs are temporary, low pay, service sector orientated? How many will VANISH as soon as debt fueled consumer spending dries up?
The affordability gap for housing in NI is WORSE than anywhere else in the UK and correspondingly the slide has been greatest here. The only thing NI has going for it is the fat public sector not exactly dynamic and this in itself will hurt the economy as those of you trapped within it will be getting below inflation pay rises.
Oh yes Arlene there is plenty of confidence in the economy, or should that be confidence trick?
Posted by M Spence | 06.08.08, 20:54 GMT