Building on economic growth

While Northern Ireland’s economy was the second fastest growing region of the UK last year there is still work to be done to improve economic prosperity.

That was the key message from the latest Quarterly Economic Review, published today by the Department of Enterprise, Trade and Investment (DETI).

The review indicates a broadly positive outlook for the Northern Ireland economy, as it outlines recent successes of growing exports, innovation and employment. Commenting on the review, the Minister said: “Northern Ireland’s economic growth last year is a good foundation on which to build a strong and vibrant economy.”

He continued: “Despite this growth however, Northern Ireland's Gross Value Added. (GVA) per head, a broad measure of economic prosperity, has remained static at 81% of the UK average in 2006.

“This report indicates that the major factor behind the GVA per head gap is our relatively low labour productivity. That is why the draft Programme for Government has set a key goal in terms of aiming to halve the private sector productivity gap with the UK average, excluding the Greater South East of England, by 2015. This goal represents a real challenge for my department and the other economy stakeholders.”

The Minister also reiterated his disappointment at the outcome of Sir David Varney’s review of taxation in Northern Ireland. Mr Dodds said: “I share the disappointment of my Executive colleagues and the business community in the outcome of the Varney Review. While I always maintained a reduction in corporation tax was not a ‘silver bullet’ for economic growth it would have provided a powerful incentive with which to attract high value-added investment. This issue will not go away. We will continue to argue the case for a cut in Corporation Tax.”

Turning to the second review announced recently by the Chief Secretary, the Minister said: “The second review needs to add real value in terms of outlining how the private sector in Northern Ireland can grow and further increase its contribution to Northern Ireland output. We need tangible policy initiatives to help address the productivity goal contained in the draft Programme for Government.”

This edition can be accessed at www.detini.gov.uk or by contacting economics@detini.gov.uk or 028 9052 9513.

Notes to Editors:

1. Media enquiries to DETI Press Office tel: 028 9052 9263.
2. Outside office hours, please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.