Northern Ireland’s economy is projected to outperform the UK average over the next five years, according to a new forecast from Ulster University’s Economic Policy Centre. The centre has upgraded its growth predictions, now expecting a 1.6% increase in 2023, driven by a resilient jobs market that has seen employment rise at the fastest rate among UK regions.
This positive outlook contrasts with a downgrade in the UK’s overall growth forecast, which has been reduced from 1.4% to 1%. The strong job growth in Northern Ireland is attributed to various factors, including the stability provided by a large public sector and potential benefits from the Republic of Ireland’s economic performance.
However, the forecast comes with caution, as ongoing geopolitical tensions, particularly in the Persian Gulf, could lead to fluctuations in energy prices, impacting inflation and interest rates. The Economic Policy Centre’s predictions were made prior to recent escalations in this conflict, which have already begun to affect energy costs.
Despite these uncertainties, the centre remains optimistic about Northern Ireland’s job market, projecting that workforce jobs could exceed one million by 2032. This growth is expected to continue, although the manufacturing sector is anticipated to add fewer jobs than in the previous decade, highlighting a shift in economic dynamics.
Source: BBC News
