NI economy conceals 'serious weaknesses'

The Northern Ireland economy conceals serious weaknesses under a veneer of economic prosperity, the latest 'Economic Review' from PricewaterhouseCoopers (PwC) has claimed.

PwC’s twenty-fourth annual review of the local economy reveals that Northern Ireland's economic growth is being driven by government spending and retail sales, rather than private sector exports and competitiveness.

The report also says Northern Ireland has experienced a steady decline in its stock of internationally-competitive companies.

PwC managing partner, Stephen Kingon, says it is unlikely that Northern Ireland can return to the levels of economic growth enjoyed in the late 1990s unless it proactively addresses the underlying structural weaknesses in the economy.

“Northern Ireland cannot rely indefinitely on public expenditure to drive the economy. Radical policy change is needed to encourage entrepreneurs and stimulate investment," he said.

“We must acknowledge the underlying structural weaknesses in the economy and develop a creative approach to deliver pragmatic solutions to these issues. That means re-examining every aspect of the current economic development strategy, including the fiscal incentives package, to differentiate Northern Ireland as a good place to do business.

“Only a radical approach to economic development can help deliver the growth in output and employment needed to close the prosperity gap with the rest of the UK and meet the demands of a growing workforce.”

PwC forecasts that the Northern Ireland economy should grow by about 2.2 per cent in 2003, slightly ahead of the UK. In 2004, UK growth should recover to rise to 2.5 per cent, with local growth remaining broadly unchanged.

Today's review also includes a major survey of over 300 of Northern Ireland’s leading companies. The survey reflects their views on the economy, political stability, business confidence and skills shortages.

(MB)