North's economy will grow 1.3pc in 2010
Published 05/03/2010 | 14:00
The North’s economy will grow 1.3pc this year in what will be a "lackluster" recovery, said Northern Bank.
The economy of the UK province will experience a “fragile and lackluster recovery,” Northern Bank chief economist Angela McGowan said in a report published in Belfast today.
The economy shrank about 4.5pc last year. The overall UK economy will probably grow 1.4pc this year, the Bank of England forecast last month.
The power-sharing government in the North is trying to put political squabbles behind it and clamp down on violence by dissident republican groups to help it lure overseas investment and boost payrolls.
While the economy stopped shrinking in the third quarter, unemployment is continuing to increase. Jobless claims rose 2.6pc in January and companies including Capita Group are cutting jobs.
“The local economy should not slip back into recession in 2010 if policy makers manage the fine line between financial austerity and sustaining economic growth,” McGowan said.
Manufacturing output will grow by 0.9pc in the first quarter of 2010 while the services sector will experience “sluggish” growth in the first half of the year, the report said.