BUSINESS FIRST
NORTHERN IRELAND ECONOMIC OUTLOOK 2017 FOREWORD
by Simon Hamilton MLA, Minister for the Economy
orthern Ireland had a successful economic performance last year and I
Nwill be looking to improve on it in 2017.
In the last 12 months there were notable milestones as we recorded a six per cent growth in our exports, reduced unemployment to its lowest rate since 2008 and companies are investing more than ever in their future, with a 24 per cent increase in their Research and Development( R & D) spending in the last year.
Businesses involved in manufacturing were recognised as being the most innovative. This clearly demonstrates how, through increased R & D spending, companies are stepping up to the mark to become world class in their field. I look forward to seeing more exciting developments in the sector over the next year.
Corporation Tax
During 2017 we will continue to prepare for the reduction in Corporation Tax which will offer huge opportunities for Northern Ireland. The Ulster University Economic Policy Centre research estimates that by 2033, we could create in excess of 30,000 additional jobs and the economy could be almost a tenth larger. In order to achieve this, my Executive colleagues and I, along with Invest Northern Ireland, will be working tirelessly to both grow local businesses and attract the Foreign Direct Investment needed to maximise this opportunity.
We have a huge talent pool of highly skilled graduates and this continues to be one of the main selling points to companies wishing to invest here.
High level business support
With SMEs forming 99.9 per cent of Northern Ireland’ s companies, I am encouraged that one in five of these have experienced a high level of growth over the past four years. By encouraging SMEs to scale up and achieve high growth this will lead to increased employment opportunities. There are many excellent local examples of this, such as Randox, Almac and Kainos.
Through Invest NI’ s Access to Finance initiative, we will continue to provide businesses of different sizes or at different stages of development with access to much needed finance, via loans and equity, to help fuel that growth.
Since the start of this financial year Invest NI support has enabled businesses to announce 1,026 new jobs which will generate over £ 31 million annually in salaries. This represents an investment in our economy of over £ 103 million.
Northern Ireland has some fantastic companies across all sectors producing goods and services that can compete globally. As well as supporting businesses to create new jobs, Invest NI is also working with local companies to grow our exports.
Exporting
Of the four UK countries, Northern Ireland saw the largest increase in exports between October 2015 and September 2016.
The International Trade Plan which I launched in October will help build on this. In the months ahead we will be confidentially looking outwards to the opportunities of global trade with the objective of accelerating and expanding our exports and boosting Northern Ireland’ s economy.
Burgeoning hospitality sector
Turning to the hospitality and tourism sector, the Northern Ireland Year of Food and Drink celebrated all that is good about our local produce.
Businesses were supported to maximise commercial opportunities in key markets through increased marketing activity and we hosted over 200 food buyers from countries as far afield as Kuwait, Hong Kong and Mexico as well as countries closer to home.
Locals and tourists alike were also treated to an array of festivals which highlighted the very best we have to offer.
I was delighted when earlier this month Titanic Belfast, was named the World’ s Leading Tourist Attraction. Tourism is key to our economy generating an estimated £ 789 million across 4.5 million overnight trips in the past year.
With 77 cruise ships docking last year, carrying over 150,000 passengers, Northern Ireland has plenty to offer for tourists and I am keen that we continue to grow visitor numbers.
If you look around Belfast and see the number of new hotels populating our skyline, tourism will be a key ingredient in the continued growth of our economy, not just in short term, but for many years to come. To transform Northern Ireland into a globally competitive economy will require considerable effort on many fronts.
Economic Strategy for Northern Ireland
My Department is currently renewing the Economic Strategy for Northern Ireland in which I intend to set out a bold and ambitious vision of how our economy will look in 2030 and beyond.
Growing businesses to scale will form a key element of this Strategy. I want to ensure the best possible business environment for everyone and enable our entrepreneurs and business startups to blossom by providing the appropriate help, support and guidance. Invest NI has a range of initiatives to help new and existing companies to grow their market share, explore new export markets and support business growth.
Last year saw many successes for the Northern Ireland economy and I look forward to building on this to ensure our economy continues to grow in 2017 and beyond. I look forward to meeting your readers over the next year as we work together to make the Northern Ireland economy a successful one.
25