Business confidence on both sides of the border has taken a knock, but cross-border trade is holding its own amid the general business gloom, according to a report out today.
The latest all-island Business Monitor survey, commissioned by InterTradeIreland, confirmed that cross-border trade has not suffered the same decline as other areas of the economy.
The canvass of 1,000 companies showed the average company turnover accounted for by cross-border trade is up to 19.3 per cent from 16.8 per cent in 2007.
Meanwhile, 40 per cent of companies in Ireland are bolstering their balance sheets by doing business in the other jurisdiction.
But while cross-border trade is holding up for the moment, business confidence is flagging and less that a third of companies believe North-South trade will increase in the next 12 months.
Less than half expect co-operation to develop in the next five years and only one in four are currently planning to increase their cross-border business links.
At the same time there has been a big drop in business confidence generally, with a doubling of the number of firms expecting "severe adverse impact" from the credit crunch over the coming year — up from 13 per cent to 27 per cent six months ago.
Only 21 per cent of companies surveyed expect turnover to increase in the next quarter - down from 36 per cent — while just 20 expect profitability to increase — a cut from 31 per cent.
Just 8 per cent expect to increase their workforce in the months ahead, a 5 per cent drop on those questioned six months ago.
Liam Nellis, chief executive of InterTradeIreland, said each market presented opportunities the other could not ignore.
He said: "The figures speak for themselves. In difficult economic times, trading across the border can offer new markets, increased sales and opportunities for innovation and expansion.
"Northern Ireland can increase the market for Southern companies by one third, while Ireland offers companies in the North a huge new customer base."
PA