NI economy slowed down in second quarter of 2023
- Published
Despite the slowdown, the local economy was still bigger compared to the same period last year
Northern Ireland's economy slowed substantially in the second quarter of 2023 with output falling by 0.5% over the quarter.
That was a big reversal compared to the start of the year when there was quarterly growth of 1.2%.
Despite the slowdown the local economy was still 1.7% bigger compared to the same period in 2022.
More recent data suggests that the economy has continued to slow in recent months.
Northern Ireland's overall economic performance is measured using the NI Composite Economic Index (NICEI).
It is not fully comparable to UK GDP as different methodologies are used, particularly when assessing public sector output.
Nonetheless the figures suggested Northern Ireland was performing better than the UK average in quarter one but worse in quarter two.
In quarter two UK GDP grew by 0.2% over the quarter and by 0.4% over the year.
The slowdown in Northern Ireland in the second quarter was mainly due to a 0.4% contraction in the services sector, which is the biggest part of the economy.
Official data released earlier this month suggest that the slowdown in services was limited to retail and hospitality, which are most exposed to squeezed household budget.
The NICEI suggests that construction and agriculture output also shrank in the second quarter while manufacturing and public sector output grew.
The NI Statistics and Research Agency (Nisra) which produces the figures said: "Although inflation is now on a downward trend from its recent 40-year peak, the slowdown in Northern Ireland economic activity in Q2 2023 comes amidst continued challenging economic conditions as consumers and businesses deal with elevated prices and higher interest rates."
Compared to the pre-pandemic level at the end of 2019 the NICEI IS 5.8% higher.
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