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10/11/2023
NI's Economy Expected To Grow By 0.6% In 2023
Northern Ireland's economy is expected to grow by around 0.6 per cent in 2023 which will will make it the UK's second-fastest growing region.
The figures have been released in the latest edition of PwC's UK Economic Outlook which expects the UK economy to grow by 0.5 per cent in 2023 and 2024, and is likely to avoid recession.
Northern Ireland benefits from greater certainty provided by the Windsor framework, while the relatively large public sector is sheltered from consumer spending pressures that hit other sectors.
Caitroina McCusker, Regional Market Leader at PwC Northern Ireland, said: "While the NI economy is growing at a faster rate than most of the rest of the UK, there is more to do to drive long-term economic growth.
"Our economy is currently experiencing a counterbalance of both positive and negative factors. The positive improvements seen in the easing of the global supply chain pressures and household energy bills is offset by stubborn inflation levels, rate rises, and industrial action in key sectors, which are weighing on economic activity.
"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."
UK CPI inflation peaked at 11.1% in October last year and is down to 6.7% on the latest data. Most of the recent falls in inflation have mostly been driven by lower energy inflation. Services inflation is likely to drop down to around 6 per cent by end of year. Core goods inflation is expected to steadily drop as supply chains are in a better state, cost pressures are less intense and demand is slowing.
Greg Boyd, economist at PwC Northern Ireland, stated: "Ever since economies have reopened following the pandemic, inflation has been front of mind for every single business leader and policymaker. As we approach 2024, there are some encouraging signs that it is finally subsiding. By the end of this year, we expect inflation to be less than half the 11% peak recorded last year, with No. 10 meeting its target to halve inflation. However, it will remain above the Bank of England’s 2% target for next year.
"Households in NI 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 NI due to lower household incomes here and because NI households spend more proportionally on energy and food, the key drivers of recent inflation."
The figures have been released in the latest edition of PwC's UK Economic Outlook which expects the UK economy to grow by 0.5 per cent in 2023 and 2024, and is likely to avoid recession.
Northern Ireland benefits from greater certainty provided by the Windsor framework, while the relatively large public sector is sheltered from consumer spending pressures that hit other sectors.
Caitroina McCusker, Regional Market Leader at PwC Northern Ireland, said: "While the NI economy is growing at a faster rate than most of the rest of the UK, there is more to do to drive long-term economic growth.
"Our economy is currently experiencing a counterbalance of both positive and negative factors. The positive improvements seen in the easing of the global supply chain pressures and household energy bills is offset by stubborn inflation levels, rate rises, and industrial action in key sectors, which are weighing on economic activity.
"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."
UK CPI inflation peaked at 11.1% in October last year and is down to 6.7% on the latest data. Most of the recent falls in inflation have mostly been driven by lower energy inflation. Services inflation is likely to drop down to around 6 per cent by end of year. Core goods inflation is expected to steadily drop as supply chains are in a better state, cost pressures are less intense and demand is slowing.
Greg Boyd, economist at PwC Northern Ireland, stated: "Ever since economies have reopened following the pandemic, inflation has been front of mind for every single business leader and policymaker. As we approach 2024, there are some encouraging signs that it is finally subsiding. By the end of this year, we expect inflation to be less than half the 11% peak recorded last year, with No. 10 meeting its target to halve inflation. However, it will remain above the Bank of England’s 2% target for next year.
"Households in NI 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 NI due to lower household incomes here and because NI households spend more proportionally on energy and food, the key drivers of recent inflation."
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Northern Ireland WeatherToday:A very mild, but mostly cloudy day, although with some bright or sunny spells. It will be mostly dry in the morning, but a little patchy light rain or drizzle at times in the afternoon. Maximum temperature 14 °C.Tonight:A band of heavier rain will move east during the evening before clearing eastwards after midnight. then mostly dry through the early hours, but a little rain towards dawn. Minimum temperature 8 °C.
