Main Industry
Republic
Predominantly focused on high-tech sectors and on pharmaceuticals. Software and call centres as well as manufacturing prevail, while traditional industry has been closing down if it is not based on high skills.
In the Economic & Social Research Institute's (ESRI) survey on the benefits of joining the euro, it found that the State's most vulnerable sector was textile and clothing and the out of date elements of food and drink. That, however, only makes up around 10 per cent of the manufacturing workforce and thus the economy overall could probably ride out competitive shocks.
Out of 250,000 employed in manufacturing around 170,000 are in domestic and multinational high-tech companies.
Northern Ireland
Galen and Norbrook are two successful pharmaceutical firms but according to John Bradley, research professor at the ESRI, the North is predominantly dependent on low-profit areas such as textile and clothing which are suffering as a result of the strength of sterling. Marks and Spencer's decision to drop its textile ordering from the North has already had a huge impact and much more may be to come, Prof Bradley warned.
Textiles is still one of the largest employers. Out of manufacturing employment of around 100,000, around 20,000 are in textiles and another 20,000 in food processing and 10,000 in transport equipment. There are 100,000 in electrical and optical equipment.
Employment
Republic
In the year to May employment increased by about 97,000 or 6.5 per cent. Unemployment decreased by 30,000 to a rate of 5.7 per cent, while the long term unemployment rate now stands at 2.5 per cent. Provisional figures for industrial employment for the year to March 1999 show an increase of 2,600. A total of 256,300 people were in industrial employment in March 1999.
Northern Ireland
The North has much higher public service employment at 200,000 out of a total of 720,000 or about 33 per cent.
Unemployment is calculated in a different way with about 7 per cent unemployed on a claimant count. However, unlike the State, unemployment on a labour force basis would be higher.
Economic Growth
The Republic
Growth by volume of 10.7 per cent of GDP in 1997 and 8.9 per cent in 1998. That is around 9 per cent of GNP in 1997 and 8.1 per cent last year. The first quarter of 1999 showed a provisional rise of 9.1 per cent, with a corresponding increase in GNP of 6.8 per cent.
For 2000 the Department of Finance is forecasting GDP growth of 7.4 per cent and GNP growth of 6.3 per cent.
Northern Ireland
According to Prof Bradley it is difficult to calculate economic growth as the North is only counted as a region of the UK. The latest published figures relate to 1997.
In general GDP growth is similar to Britain but the manufacturing rate is higher. According to Mr Michael Anyadike-Danes, chief executive of the Northern Irish Economic Research Council, growth will average 2.5 per cent to 3.5 per cent over the next few years before falling back. Manufacturing growth is higher because of the grants available to set up in Northern Ireland.
Exchequer Surplus
The Republic
In 1999 the expected Exchequer Surplus will be of the order of £1.1 billion which compares with the 1999 Budget target of £925 million. The Exchequer Surplus in 1998 was £747 million.
In 1998 the General Government Balance (GGB) was 2.4 per cent of GDP and the comparable figure for 1999 is expected to be 1.7 per cent of GDP, which includes the impact of paying £1.25 billion to discharge future pension liabilities arising in respect of An Post and the Eircom.
Northern Ireland
The additional amount spent on public services is around £2.5 billion higher than the amount raised in tax revenue. However, when Northern Ireland Office activities, including security, are taken into account it is closer to £3.5 billion or between 25 per cent and 30 per cent of Gross Domestic Product.
However, as a region of the UK it does not have to finance its own regional deficit.
General Government Debt
The Republic
The debt to GDP ratio by end-1998 was 49.5 per cent, down from 59.9 per cent at end-1997
Northern Ireland
As a region it does not have its own debt.
Inflation
The Republic
The latest CSO figures show that the Consumer Price Index rose by 2.1 per cent year on year in November. On an EU harmonised basis it was up 3 per cent. The Department of Finance forecasts that headline inflation will rise by 1.6 per cent in 1999 compared with 2.4 per cent in 1998.
Northern Ireland
Overall UK inflation was running at 2.2 per cent.
Interest Rates
The Republic
Euribor three-month interbank interest rate ended November at 3.45 per cent, down from 3.49 per cent at the end of October. The European Central Bank's rate at the end of November was 3.5 per cent.
Northern Ireland
Interest rates reflect the UK market as a whole. Three months money is 6 per cent while base rates set by the Bank of England are 5.5 per cent.
House Prices
The Republic
Department of the Environment and Local Government figures show that the prices of new and second-hand houses rose by 22.8 per cent and 31.4 per cent respectively in 1998. In the second three months of 1999, average new house prices rose year on year by 16.7 per cent to £113,299, while average second-hand house prices rose by 22.3 per cent to £125,582. In the same period, average new house prices in Dublin rose year-on-year by 18.5 per cent, to £147,301 and average second-hand house prices in Dublin rose year-on-year by 20 per cent, to £160,839.
Northern Ireland
House price inflation would be considerably lower at around 4 per cent a year. The average house price at the end of September was £71,804.
Exports
The Republic
Total exports in 1998 were worth £45 billion. This was an increase of 27.5 per cent over 1997. Exports in 1998 were up 24 per cent in volume compared with 1997. Most of this is made up of high-tech goods and pharmaceuticals at almost 65 per cent.
Northern Ireland
It is necessary to make a distinction between external sales and exports. External sales include Britain and exports are sales to the rest of world.
Exports from the North to the Republic account for above 20 per cent which is bigger than France and Germany combined.
Overall it is likely that exports are growing at around 4 per cent or 2 per cent in terms of real growth, according to Prof Bradley.
Tax Package
The Republic
Personal taxes have been reduced in recent years. The standard rate is 22 per cent while the higher rate is 44 per cent. This comes into effect at £17,000 for single people. Corporation taxes are low and are due to be only 12.5 per cent in five year's time.
Northern Ireland
A bottom 10p rate of tax and a basic rate of income tax of 22p, the lowest it has been for almost 70 years. There is also a children's tax credit, designed to support families, to be introduced from April 2001.
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