Increasing globalisation will bring new challenges to Northern Ireland in the coming years, an economic review has warned.
Competition from emerging economies will force the region to continue to reduce the number of low-skilled workers in its economy and raise its relatively low employment and productivity rates, according to the review of Northern Ireland's economy published today by Sir David Varney.
However, the review also pinpoints a number of strengths in the economy, including the young age of the population, the strength of the education system, transport links with the rest of the UK, Ireland and Europe, and macroeconomic stability.
These core strengths, combined with investment incentives, attracted inward investment in the region and contributed to the strong growth in output.
Sir David's review made a number of recommendation to further boost the region's competitiveness including the continued development of an all-island economy, reform of the public sector, increasing the employment rate and boosting the number of employer-led training schemes to plug skills gaps.
The Institute of Chartered Accountants in Ireland (ICAI) described the review as a step in the right direction.
"We welcome these proposals while noting to a very large extent they already reflect the existing aims of the Executive," said chairman of the ICAI Ulster Society Kevin McAllister.
“They were also included in our representations to him when responding to the call for evidence as he compiled his second review. Northern Ireland business knows that the status quo cannot continue if we are to achieve economic development. We are glad that this message has got across to Sir David.”