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NI Economy Weak: Businesses Face Fragile Growth
16 Apr
Summary
- Northern Ireland's economy shows weak and uneven growth.
- Most businesses report marginal profitability, not strong performance.
- Recruitment difficulties are extremely high for firms surveyed.
Northern Ireland's economy is characterized by weak and uneven growth, as indicated by a recent report from NI Chamber and Queen's University Belfast. The Quarterly Business Insights report reveals that while most key indicators are marginally positive, the margins of improvement are narrow and have not strengthened.
Around 72% of surveyed firms reported some level of profitability, though this is driven by moderate rather than strong performance. Businesses are operating in a fragile, low-growth environment, compounded by global cost pressures and embedded labor cost increases.
Suzanne Wylie, chief executive of NI Chamber, highlighted that businesses are trading and investing in people amidst these challenges. She urged the UK Government and the Northern Ireland Executive to collaborate on supporting businesses and addressing structural issues like skills, planning, and wastewater capacity.
Professor Richard Ramsey from Queen's Business School noted that the economy shows resilience but is hampered by weak demand, persistent cost pressures, and severe labor constraints. Recruitment difficulties are exceptionally high, with 100% of manufacturers and 77% of services firms reporting challenges filling vacancies.
The report, based on responses from 180 businesses representing nearly 41,000 employees, underscores the need for an agreed, long-term economic plan to provide clarity and direction for businesses.
