Economies transformed on both sides of Border

The Irish economy both North and South has been transformed over the past five years.

The Irish economy both North and South has been transformed over the past five years.

For different reasons each has grown substantially in the late 1990s, house prices have risen and incomes have grown rapidly, according to a new report, Ireland North and South.

The report, which was jointly produced by the Northern Ireland Statistics and Research Agency and the Central Statistics Office, provides an insight into the similarities and differences between the two parts of the island.

Economically, perhaps the biggest discrepancy is in terms of pure growth. Northern Ireland has grown steadily and rapidly in comparison with the rest of the EU and indeed much of the OECD, but at only half the pace of the Republic.

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Between 1990 and 1998, Gross Domestic Product per capita doubled in the Republic but increased by only 50 per cent in the North. Even by 1997, GDP per capita in the Republic was slightly higher than the EU average, while the corresponding figure in Northern Ireland was 82 per cent.

Wage rates were also higher in the Republic, at least up to 1998, the latest date where comparable data are produced. At that time the average weekly wage in construction was £265 sterling in Northern Ireland and £349 in the Republic.

Workers in the electricity, gas and water supply industries earned £392 in the North and £457 in the Republic.

However, people in both areas spent similar proportions of their incomes on various goods and services. Food made up about 23 per cent of household spending in the Republic and 21 per cent in Northern Ireland, while Northern Irish families spent more on clothing and footwear and on transport. Services accounted for a high proportion of spending in the Republic.

The Republic has also taken over in terms of numbers in employment. From 1995 to 1998, the unemployment rate was higher in the Republic but this has changed since 1999. The Northern Irish rate has been higher for men since 1995.

The impact of the boom is also seen in house price comparisons. Average house prices in the Republic more than doubled between 1994 and 1999. In contrast, Northern Ireland prices increased by 21 per cent over the same period.

The average price for a new home in Northern Ireland in 1999 was £75,000 sterling (£93,750) and £117,000 in the Republic. Up to 1995 prices had been broadly similar.

Home ownership is also more popular in the Republic, where more than two-fifths of households lived in accommodation they owned outright while it is less than a third in Northern Ireland. More than a third of Northern Irish households were in rented accommodation compared with fewer than 20 per cent in the Republic.

The report also shows that visitors to the Republic increased by 65 per cent over the past five years while the increase in Northern Ireland was 28 per cent. The Republic has a higher proportion employed in financial services, hotels and restaurants as well as agriculture.

Northern Ireland has a higher proportion in administration, defence, education and health.

The number of women in the labour force in the Republic is also catching up with the North. Over the five years to 2000, female participation in the Republic rose from 40 per cent to above 47 per cent. In contrast, the rate in Northern Ireland remained stable at 48 per cent.