THE Northern Ireland economy would continue to grow strongly, according to the latest forecasts from the Northern Ireland Economic Research Centre and Oxford Economic Forecasting. They estimate GDP growth of 2.5 per cent this year, in line with the UK average, rising to 3.3 per cent in 1997 and 2.9 per cent in 1998.
Northern Ireland continues to grow rapidly compared to the UK, according to the survey and forecast job creation and output growth rates place the region amongst other top regional performers, it says. " There is little sign as yet that the prospect of renewed violence has dampened the hope of a boom in construction and tourist industries," it said. "Even if violence does return, it is not expected to lead to a dramatic downturn in activity," it said. Violence has had little impact on most sectors in recent years, being out weighed by a high level of public spending which has helped to stabilise employment and output, according to the report.
The region's attractiveness to private business lies in below average wages, cheap lands and generous grants, it says. "Irrespective of political conditions, we expect Northern Ireland to continue as the UK's third fastest growing region", even though unemployment is likely to remain high.
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