Northern Ireland economy to grow faster than most areas in the UK - forecast

According to a new forecast, Northern Ireland's expected growth of 0.6% in 2023 is only behind London at 0.8%

The Northern Ireland economy is expected to grow at the second fastest rate in the UK this year, according to PwC.

It suggests the NI economy will grow by about 0.6% in 2023, behind London which is expected to see 0.8% growth.

The forecast said this is because Northern Ireland benefits from greater certainty through the Windsor Framework and a large public sector.

But PwC said there was more to do to drive long-term economic growth.

Caitroina McCusker, of PwC, said: "There is value in driving investment in the longer-term levers for economic growth here, including stimulating inward investment and accelerating support for skills and education."

• More than half of businesses see demand slow down

• Why is UK inflation so high?

• Optimism as NI economic growth outpaces UK average

Businesses and consumers in Northern Ireland, as in the rest of the UK, have been feeling the pressure caused by inflation which is still stubbornly high at 6.7%.

That has fallen from the peak of more than 11% last year, but is still well above the Bank of England's target rate of 2%.

Finances to remain tight

Greg Boyd, an economist at PwC Northern Ireland, said: "Households in Northern Ireland may still be feeling a tightness in their finances, as consumer prices are still increasing, albeit at a slower pace.

"The impact of this cumulative price increase is felt more profoundly in Northern Ireland due to lower household incomes here and because Northern Ireland households spend more proportionally on energy and food, the key drivers of recent inflation."