NI economy: Forecasted growth less than 1% in 2024

The forecast suggested there will be a rise in unemployment

The Northern Ireland economy will grow by just 0.7% in 2024, a new forecast from the consultancy EY suggests.

It also suggested the current very low rate of unemployment will move slightly higher.

The forecast is similar to one published in January by the Ulster University Economic Policy Centre.

That forecast suggested the economy would grow by 0.8% this year and 1.1% in 2025.

'Grounds for optimism'

EY Ireland chief economist Dr Loretta O'Sullivan said while the immediate growth outlook was muted, there were "grounds for optimism into the medium term".

She pointed to a resilient jobs market, declining inflation and the restoration of power-sharing as offering "the opportunity to unlock the economic potential of Northern Ireland".

She added that while Bank of England interest rate cuts were a real prospect this year, past increases were continuing to have "a dampening effect on the economy".

The most recent official data for Northern Ireland, covering the third quarter of 2023, suggested manufacturing and consumer services like retail were having a tough time but service exports were doing well.

Meanwhile, the National Institute for Economic and Social Research also suggested the return of devolution last weekend and the £3bn economic support package will help the economy.

The think tank said it could help business investment as public spending helps unlock private investment.