The economy in Northern Ireland is growing at half the rate required to provide sufficient new jobs for its expanding population and to finance essential infrastructure investment, a report warns today.
According to the 22nd Annual Review and Prospects Report, carried out by PricewaterhouseCoopers (PwC), the Northern Ireland economy in 2001 is relatively healthy but there are significant danger signs ahead.
PwC managing partner Mr Stephen Kingon said Northern Ireland is only half-way towards creating the 13,000 net new jobs per annum that are required to satisfy a growing population and to provide jobs for the unemployed.
PwC believes that the Northern Ireland economy will probably grow at between 2.0 and 2.5 per cent per annum but Mr Kingon has warned that this will not be sufficient to stimulate growth.
The report shows that 8,100 net new jobs were created in the North in 2000 but that the percentage of its working-age population actually in employment remains the lowest in Britain. According to PwC, at the start of 2001, 67 per cent of the North's working-age population had jobs, compared to the British average of 74 per cent.
PwC says the impact of the outbreak of foot-and-mouth on the North's hospitality sector could exceed £100 million sterling (€167 million). However, it estimates the total cost of foot-and-mouth to the Northern economy is likely to be less than 0.5 per cent of GDP during 2001.
The report says the majority of companies in the North forecast growth in the current year. But the overall percentage forecasting growth - 58 per cent - was a six-year low and down from 65 per cent in 2000.
