Economic outlook.. slight deceleration expected
The BBC report on the November 2005 issue of PriceWaterhouseCoopers UK Economic Outlook, which has just been published.. a summary of the report is on the PWC website, and the full report is here [PDF file]. The BBC headline seems a bit obvious though, a sharp slowdown in UK economic activity would put a chill on all regions, surely. The report actually states that some deceleration is expected in economic growth in NI over the next 12 months, and it does identify two key drivers of economic growth – consumer and government spending.. but it also indicates two distinct risks to future economic activity in Northern Ireland – Political risks and an over reliance on the public sector [see table on page 42].
Tags: Economy
600 farms a year in Northern Ireland closing down and a 16.5% drop in manufacturing jobs since 2000 is very worrying.
But house prices are rising and retail sales are strong due to the ongoing public investment. As long as the cash keeps flowing from London, the figures will look okay.
I’m also worried that the £2.5 billion (3.7 billion euros) promised for transport infrastructure between now and 2015, as opposed to 34 billion being spent south of the border in the same timeframe, will dent industrial development and mean that NI will continue to rely on public handouts and the parts of the economy generating wealth will continue to contract.
How can NI industry compete with the Republic if it is spending just over a tenth of what the Republic is spending on transport infrastructure?