Business

Economic growth in the north lagging behind UK rivals, says report

Growth in the Northern Ireland economy in the year to March was just 0.7 per cent, according to new research
Growth in the Northern Ireland economy in the year to March was just 0.7 per cent, according to new research Growth in the Northern Ireland economy in the year to March was just 0.7 per cent, according to new research

THE north reported the lowest economic growth out of all UK regions at the start of 2019, according to new figures.

The latest estimates from the Economic Statistics Centre of Excellence (ESCoE) show that growth in the Northern Ireland economy in the year to March was just 0.7 per cent - the lowest of the 12 regions and less than half the UK average (1.65 per cent). The figure was marginally below the growth levels in the north east of England, recorded at 0.8 per cent, but both lag well behind their UK rivals.

Unsurprisingly London topped the rankings, reporting growth of 2.7 per cent during the year, followed by the south west of England (2.1 per cent), Scotland and the south east of England (both 2 per cent).

In the year to December 2018 the outlook was slightly more positive in the north, with growth of 0.9 per cent recorded, slightly above the level in Wales (0.8 per cent) and on par with the east of England. However it remained well below the London rate (2.9 per cent) and the UK average (1.47 per cent).

Ulster University senior economist, Dr Esmond Birnie said the latest figures do not make pleasant reading.

"The independent economic research unit Economics Statistics Centre of Excellence (ESCoE) are making brave attempts to provide very timely estimates of the economic growth (gross value added) change in each of the 12 main UK regions.

"The results included in their blog on Monday indicate Northern Ireland is bottom of the UK regional league," he said.

"Growth in Northern Ireland in the year to Q1 2019 was well below 1 per cent and the lowest of the 12 UK regions. If anything, also considering the ESCoE estimates for the 12 months to December 2018 Northern Ireland growth is slowing down and is falling further behind the rest of the UK."