Northern Ireland

Danske Bank revises 2016 economic growth forecast for Northern Ireland to 1.6% from 1.8%

Angela McGowan
Image caption Angela McGowan said that while the Northern Ireland economy continues to expand, the pace of growth is slowing

Danske Bank has revised its 2016 economic growth forecast for Northern Ireland down to 1.6% from 1.8%.

Angela McGowan, the bank's chief economist, said the uncertainty over the EU referendum had "dampened" private sector investment.

She said there could be a "bounce-back" after the vote.

But she added that other factors such as public sector austerity and weaker global conditions would weigh on growth.

Some sectors such as IT and tourism are forecast to grow more strongly, at over 3%.

Manufacturing, construction and agriculture are all forecast to grow more slowly than average.

"The message remains that Northern Ireland's economy continues to expand, but the pace of growth is slowing," Ms McGowan said.

"While the continued reduction in the public sector jobs will weigh down overall growth in the short to medium term, by far the biggest risk to growth this year is Brexit which has lowered investment and growth in the first half of this year."

Other economic forecasts, such as one from PwC, also predict that economic growth in Northern Ireland will only be around 1.5% in 2016.

In February, Cambridge academic Dr Graham Gudgin said that a UK exit from the European Union would not have "much effect" on the Northern Ireland economy.

He told the Northern Ireland Affairs Committee at Westminster that studies suggested the impacts on the UK economy would be in the range of plus or minus 2% of GDP.

Related Topics

More on this story