More challenging times ahead - Foster

Enterprise Minister Arlene Foster has launched the Department of Enterprise, Trade and Investment’s latest Quarterly Economic Review.

The Review contains the latest statistics for the global, United Kingdom, Republic of Ireland and Northern Ireland economies, and draws on a number of independent commentaries, to provide a summary of the current economic climate.

Commenting on the Review, the Minister said: “The UK economy is now officially in recession and Northern Ireland, in common with other regions, is facing significant economic pressures. Local businesses are continuing to face unprecedented challenges. Private sector output and employment are falling, whilst unemployment is on the rise, with a marked increase in the number of benefit claimants.

“As a result of the current economic difficulties, major developed economies are simultaneously experiencing recessionary pressures, and this is leading to a significant downgrading of economic growth.

“As this is a global downturn, the majority of policy levers remain at national and international level. Measures have been put in place to recapitalise large parts of the banking sector and there have also been unprecedented reductions in the level of interest rates in the UK and elsewhere. Only this week, the Bank of England announced a further cut its rate to 1%, in a bid to instill confidence in the economy.

“I remain fully committed to providing support and assistance at this difficult time.”

The Minister said: “In conjunction with these national measures, the Executive has also taken several important steps to help Northern Ireland through the downturn.

“We have worked tirelessly to encourage the local banking sector to help our businesses access sufficient support and funds. This week’s announcement by Ulster Bank to provide additional debt finance and access to other options to help businesses manage their capital and cashflow in the current downturn, is a very welcome move.

“The Executive will continue to encourage all banks here to participate in the loan guarantee schemes and the UK Government’s new Enterprise Fund, to provide local businesses with a wider range of funding options and help boost their confidence at this very difficult time.

“The Executive also recently announced a £45million assistance package to help local businesses, in particular those operating within the construction sector. In addition, Invest NI has introduced a number of measures to help support clients remove constraints to growth and competitiveness brought about by the downturn.

“In my capacity as Chair of the Economic Development Forum (EDF), I have established a sub-group to consider what additional measures could be implemented to help businesses through the economic downturn. The sub-group will be reporting to me as a matter of urgency and its proposals will be discussed at a full plenary group of the EDF in early February.”

The Minister concluded: “In the past, Northern Ireland’s relatively large public sector has largely insulated it from economic downturns. While this feature remains, the economy is now more outward-looking and we will therefore not escape the impact of the global downturn. I remain fully committed to the growth and development of our regional economy and I will continue to work with partners and stakeholders to help steer us through this recession and achieve that end goal.”

This edition of the QER can be accessed online at http://www.detini.gov.uk, by email at economics@detini.gov.uk or tel: 028 9052 9513.

Notes to Editors:

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