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 .
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