NORTHERN'S Ireland's economic growth is among the highest in Britain but is suffering from the dual afflictions of mad cow disease and political uncertainty, according to a new survey.
The survey by accountancy firm Coopers & Lybrand said that the North's agricultural and ancillary services were severely affected by the beef crisis. It said the North was also labouring under uncertainty caused by the end of a 17 month old ceasefire, a confused political situation and "talking down" the economy by the media.
Coopers & Lybrand said constraints on public spending in the North, where the public sector is equivalent to about 60 per cent of gross domestic product, may further dampen the potential for economic growth. The survey said the financial fall out from the BSE crisis and the general slowdown in the British economy were major problems for a region which exports 80 per cent of its beef, 57 per cent of which goes beyond Britain.
On the positive side, Northern Ireland's unemployment rate is continuing to fall and consumer confidence remains buoyant, with rising house prices and a very active retail sector, it said.
The survey noted a relatively high level of business activity in Northern Ireland, with the Industrial Development Board (IDB) reporting its best ever performance in the year to March.
The review finds a relatively high overall level of business activity in the North. According to Coopers & Lybrand's Northern Ireland managing partner, Mr Stephen Kingon. "This national survey suggests that Northern Ireland continues to perform well and remains amongst Britain's topper forming regions." However, he added that as well as the BSE crisis, the North would also be affected by "the general slow down in the British economy."
Meanwhile, the quarterly survey of business confidence carried out by the Confederation of British Industry in Northern Ireland has shown that while overall business confidence is still low, companies are significantly more optimistic about the future than they were three months ago.
The report, which canvassed opinions from over 50 companies employing over 30,000 people, found that demand had strengthened in the manufacturing sector but had declined among service companies. Exports to the Republic among the participating firms were sharply up.
The acting director of the CBI in Northern Ireland, Ms Deirdre Stewart, said that the while the greater optimism among local companies was encouraging, the low overall level of business confidence was "undoubtedly linked with the lack of political stability".
