Northern Ireland economy needs to do better

The Northern Ireland economy is showing signs of recovery after two difficult years, but needs to improve in order to close the prosperity gap with the rest of the UK, business advisors, PricewaterhouseCoopers (PwC) have said.

PwC’s 23rd annual ‘Review and Prospects for the Northern Ireland Economy’, launched on Friday 5 July says that the local economy has been insulated from the worst of the global recession by a combination of high public expenditure and better than expected UK economic performance during 2001.

PwC says it expects the Northern Ireland economy to grow by around 2.0 per cent in 2002, slightly ahead of the UK. If the recovery continues, the North’s GDP growth should also increase to 2.5 per cent in 2003.

However, PwC managing partner, Stephen Kingon says that consistent annual growth of well over 3 per cent is necessary to help fund essential public services, redress underlying structural weaknesses in the Northern Ireland economy and close the prosperity gap with the rest of the UK. He added: “Growing Northern Ireland’s economy by two per cent per annum is not good enough. To meet the needs of a growing workforce, the effects of increased competition and the challenges of EU enlargement, Northern Ireland needs GDP growth of more than 3 per cent a year for the rest of the decade.”

The PwC Review includes a major survey of 300 of Northern Ireland’s leading companies and reflects their views on the economy, including political stability, business confidence and skills shortages. The survey reveals that while most companies are anticipating growth over the next 12 months, the level of anticipated growth in the business community is at a nine-year low. PwC says that more companies- particularly larger, foreign-owned firms- are consolidating their operations than at any time since the early 1990s.

(MB)