Northern Ireland economy on the up, but faces 'headwinds'

The Northern Ireland economy should return to pre-pandemic levels later this year, according to a university report.

However, the Ulster University's Economic Policy Centre report added there are "significant headwinds", not least the war in Ukraine.

As challenges from Omicron are overcome, the Ukraine war will exacerbate existing risks, it said.

Director Gareth Hetherington said many of the challenges were global ones.

As a result they were "largely outside our control at least in the short-term", he said.

"Although the UK has limited direct reliance on Russian oil and gas, the energy market is global so any supply shortfalls in one market, for example mainland Europe, pushes the price up for everyone," he added.

Inflation has been pushed up by a range of factors, with warnings that the deteriorating situation in Ukraine has created longer-term implications which could keep prices higher for much longer.

Despite the very serious economic challenges ahead, the report said businesses continue to highlight access to talent as their main issue.

"Although this has been attributed to the pandemic causing many migrants to return home, this situation has been developing for several years," Mr Hetherington said.

"The pandemic has also resulted in a significant increase in demand for those with higher level qualifications.

"Over the last two years, the proportion of the labour market with a degree level qualification or above has increased from 25% to 37%.

"In contrast, over the same time period, those with low or no qualifications has fallen from 21% to 15%. This underlines the importance of increased investment in skills by any incoming executive."