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05/07/2017
£1bn Tory-DUP Deal 'Will Not Alter Challenges Facing Executive'
The £1 billion Tory-DUP deal will "not fundamentally alter the structural challenges that face any new Executive", according to PwC.
In it's latest 'Northern Ireland Economic Outlook' report, the organisation stated Northern Ireland's economy is expected to grow by 1% in 2017, falling to around 0.9% in 2018.
However, PwC partner David Armstrong said the additional £1bn agreed as part of the DUP-Conservative 'confidence and supply' arrangement will alleviate some immediate problems, but that issues such as productivity, reform of agri-food and scaling-up the private sector "remain unresolved".
He said: "The investment package will alleviate some urgent current pressures, but it is not the silver bullet that will regenerate an underperforming economy. Employment has now recovered to more than the pre financial crisis peak, but virtually all other recovery measures remain below their 2007 level. Rising inflation means real wage growth is now negative, household savings levels are at their lowest since the early 1960s, so medium-term growth prospects are not encouraging.
"The good news is that the local economy will keep on growing, although a combination of decelerating consumer expenditure, lacklustre business investment and Brexit jitters, suggest that growth will slow. We now expect the Northern Ireland economy to grow by around 0.9% in 2018 - well behind the forecast UK growth of 1.4% and the lowest amongst the UK regions."
(LM/MH)
In it's latest 'Northern Ireland Economic Outlook' report, the organisation stated Northern Ireland's economy is expected to grow by 1% in 2017, falling to around 0.9% in 2018.
However, PwC partner David Armstrong said the additional £1bn agreed as part of the DUP-Conservative 'confidence and supply' arrangement will alleviate some immediate problems, but that issues such as productivity, reform of agri-food and scaling-up the private sector "remain unresolved".
He said: "The investment package will alleviate some urgent current pressures, but it is not the silver bullet that will regenerate an underperforming economy. Employment has now recovered to more than the pre financial crisis peak, but virtually all other recovery measures remain below their 2007 level. Rising inflation means real wage growth is now negative, household savings levels are at their lowest since the early 1960s, so medium-term growth prospects are not encouraging.
"The good news is that the local economy will keep on growing, although a combination of decelerating consumer expenditure, lacklustre business investment and Brexit jitters, suggest that growth will slow. We now expect the Northern Ireland economy to grow by around 0.9% in 2018 - well behind the forecast UK growth of 1.4% and the lowest amongst the UK regions."
(LM/MH)
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