'Decade Of Growth' On Way For NI Business

Northern Ireland businesses are the most positive of all the regions in the UK about the potential for the region to become a better place to do business in ten years time.

Some 77% of businesses believe this to be the case, according to 'Business in 2021' research released by Barclays Corporate.

In addition, over two thirds of local businesses (70%) are anticipating steady and sustained growth over the next ten years, while 48% believe an increase in gross domestic product (GDP) will take place.

The research, in which 660 business leaders from across the UK were surveyed on the conditions they expect their businesses to face in a decade, showed a general consensus that there will be much more foreign ownership of UK companies and assets in the next ten years.

In Northern Ireland 66% of businesses share this opinion, including 34% of businesses that believe there will be 'much more' foreign ownership in the UK.

When asked to identify areas of growth, 89% of businesses in Northern Ireland identified the technology sector as one of the areas most likely to fuel economic growth over the next decade, while 86% cited the hospitality and tourism sector and 71% the manufacturing sector.

Adrian Doran, Head of Northern Ireland, Barclays Corporate commented: "It is very encouraging that many businesses believe in the fundamental strength of Northern Ireland as a place to do business, and hopefully underlines that many of the challenges we are currently experiencing are temporary rather than permanent.

"It is also telling to see that locally based businesses are more positive about their region than the UK as a whole, showing the importance of regional development.

"The fact that 70% of Northern Ireland businesses are anticipating steady and sustained economic growth over the next decade should also be welcome news for a Government that is focussed on developing a growth strategy," he explained.

Mr Doran continued: "Whilst the UK as a whole has been a magnet for foreign direct investment (FDI) for more than two decades, Northern Ireland has had more limited success, certainly compared to the Republic of Ireland.

"In this respect, the next few months are crucial for us as we await the Treasury's response on the proposal to cut corporation tax.

"If carried through, this would likely have a major impact on Northern Ireland's attraction as a location for FDI."

However, the survey more worryingly revealed a lack of ambition around exporting, with 64% of Northern Ireland businesses stating they had no have plans to start exporting in the coming ten years. For those local businesses who are exporting, 60% expect most sales growth in exports to come from the USA.

(BMcC)