The economy in the North is outperforming other UK regions, despite the impact of the global slowdown and the United States terror attacks, according to a new business survey today.
The PricewaterhouseCoopers' (PwC) latest UK Economic Outlook and Regional Trends shows Northern Ireland has been less hard hit than other regions, despite major redundancy programmes announced by key employers. PwC says the North's economy has undoubtedly slowed but that employment continues to grow compared with regions such as Wales and the south-east of England where growth has stalled.
Mr Stephen Kingon, PwC managing partner, said the North's relatively large public sector acts as a buffer against the worst impacts of the current global crisis.
"Recent redundancies at Bombardier and Nortel have been a blow to the local economy but compared to other UK regions we are performing relatively well. But we must not become complacent, there are difficult and challenging times ahead and the local business community needs to be prepared," he warned.
In its latest survey, PwC states it is unable to assess the full economic impact of the US terror attacks and their aftermath. But it warns that Northern Ireland can expect to face specific challenges particular to the make-up of its economy.
Mr Kingon said that although the manufacturing sector in the North on the surface was outperforming the UK average and continuing to create jobs in some areas, it, in particular, faced difficult times.
Looking ahead, Mr Kingon believes political developments in the North, including IRA decommissioning, will help underpin economic development and growth in the short-term. "The Assembly has been of demonstrable benefit to the community, to business confidence and to the favourable perception of Northern Ireland abroad," he said.
