NI 'well placed' to survive slump

THE NORTH'S economy is better placed to deal with the current slowdown than at any time in the previous 10 years, a Confederation of British Industry (CBI) briefing has heard.

Speaking at the CBI annual economic presentation yesterday, Ulster Bank's NI economist, Richard Ramsey, outlined factors bolstering the local economy.

These include what he called the "substantial progress over the last decade" as well as the Stormont Executive's decision to make a priority of private sector growth in its three-year Programme For Government.

Mr Ramsey also praised recent initiatives including the North-South IFSC link-up announced by Brian Cowen and Peter Robinson in their capacity as finance ministers.

This month's US-Northern Ireland investment conference was also singled out for praise.

However Mr Ramsey also said simultaneous slowdowns in private sector investment, public spending and in the housing market would produce slower economic growth and higher inflation and unemployment.

Referring to the Varney report on the economy's competitiveness, the presentation heard that the Executive's response was still awaited. Stormont's ability to deliver on the sound policy contained in the Programme for Government would also be watched closely, he added.

Looking at the wider economic picture, CBI chief economic adviser Ian McCafferty said the current credit crunch meant "the end of easy money". He referred to problems in the commodities markets and exchange rates and said the UK slowdown was concentrated in finance, retail and consumer services. Sterling's depreciation helped UK exporters but had implications for the cost of imports.

More importantly, what he called the UK inflation "overshoot" meant there was less room for "monetary loosening". These factors combined to make the future "unusually uncertain".

Meanwhile, Belfast City Council's State of the City conference heard speakers from the OECD address the economy's potential.

Results of a year-long study into the city's development potential were presented. They included how the competitiveness of Belfast could be improved by co-ordinating the private, public, voluntary and community sectors.

The conference also heard how the Belfast economy should be developed so all its residents benefit. The conference also dwelt on the further development of North-South economic relations and the upgrading of the Belfast-Dublin corridor in particular.

The conference was the fifth in a series organised by Belfast City Council to bring together organisations involved in the development and regeneration of the city.

Around 150 delegates attended.