Belfast Telegraph

Republic's market return should benefit the whole island: O'Leary


Northern Ireland should benefit from a positive mood engendered by the Republic's return to the money markets, it has been claimed.

Northern Ireland's closest trading partner this week raised €3.75bn (£3.09bn) from the issue of a new 10-year bond – Ireland's first foray into international money markets since it exited its £71bn bailout last month.

Dermot O'Leary, chief economist at stockbrokers Goodbody, said: "Given the importance of cross-border trade and investment, the signs of recovery in the Republic should benefit the whole island.

"The Republic currently imports about €1bn (£0.82bn) in goods from Northern Ireland, but this was above €1.3bn (£1.07bn) prior to the downturn."

He added: "There will always be competition for foreign direct investment, but Northern Ireland is also in a better position now due to the closing of the gap on corporation tax rates."

Economist John Simpson said it was a welcome development for Northern Ireland: "It's another step towards having a more stable neighbour."

However, Ulster Bank chief economist Richard Ramsey said he did not believe it would have a strong impact in Northern Ireland.

"The only thing this is going to do is to improve financial market confidence in Ireland," he said.

Belfast Telegraph