Economy of Northern Ireland

Economy of Northern Ireland

The economy of Northern Ireland is the smallest of the four countries in the United Kingdom. Northern Ireland has traditionally had an industrial economy, most notably in shipbuilding, rope manufacture and textiles, but most heavy industry has since been replaced by services. To this day, Northern Ireland still suffers from the results of the Troubles which occurred between the late 1960s until the mid-1990s.



Output and economic growth

Northern Ireland has the smallest economy of any of the twelve NUTS 1 regions of the United Kingdom, at €37.3bn, or about two-thirds of the size of the next smallest, North East England. However, this is partly because Northern Ireland has the smallest population; at €19,603 Northern Ireland has a greater GDP per capita than both North East England and Wales.[1]

Other Comparisons

*Border Midland & Western Ireland (1.1 million) **Southern & Eastern Ireland (3 million) Northern Ireland (1.75 million)
€25.5 bn GVA €497,374 bn GVA €37.3 bn
€23,637 GVA per person €35,725 GVA per person €19,603 per person

Throughout the 1990s, the Northern Irish economy grew faster than did the economy of the rest of the UK, due in part to the Celtic Tiger rapid growth of the economy of the Republic of Ireland and the so-called 'peace dividend'. Growth slowed to the pace of the rest of the UK during the down-turn of the early years of the new millennium, but growth has since rebounded; in 2005, the Northern Irish economy is estimated to have grown by 3.2%, almost twice as fast as the UK as a whole, and future growth is expected to be stronger than that of the rest of the United Kingdom,[2] though lower than that of the Republic. In April 2007 a Halifax survey found Northern Ireland's average house price to one of the highest in the UK, behind London, the South East and the South West. It also found Northern Ireland to have all of the top ten property "hot spots", with the Craigavon and Newtownards areas increasing by 55%.[3]


Unemployment in Northern Ireland has decreased substantially in recent years, and is now roughly at 14.5%, down from a peak of 17.2% in 1986.[4] Youth unemployment and long-term unemployment have fallen most quickly. Working-age economic inactivity is 28%, which is the highest of any UK region.[5]

Northern Ireland's macroeconomy is also characterised by considerably longer actual working hours and lower gender income disparity than in the United Kingdom as a whole.[5]


During the Troubles, Northern Ireland received little foreign investment.

Since the signing of the Good Friday Agreement, investment in Northern Ireland has increased significantly. Most investment has been focused in Greater Belfast. Major projects include the £400 million Victoria Square retail development in Belfast City Centre. The city will also see the largest waterfront development in Europe with the Titanic Quarter[6] scheme, costing over £1 billion and taking seven years to complete. The Laganside Corporation has been at the forefront of the redevelopment of the riverfront along the banks of the River Lagan, to date the corporation has overseen the investment of over £800 million in the riverside area. The Cathedral Quarter has also seen substantial investment.

In addition, the Department of Enterprise, Trade and Investment has commissioned MATRIX, the Northern Ireland Science Industry Panel,to advise government on the commercial exploitation of R&D and science and technology in Northern Ireland.[7]

The Matrix Panel aims to grow NIs wealth by encouraging the exploitation of its science and R&D base. The work has shown that there is still a need for greater exploitation of science and technology and a step-change in innovation in the economy and workplaces.[8]

The Panel’s recommendations are the result of a collaborative effort of technology industry leaders and experts in Northern Ireland.[9]


Agriculture in Northern Ireland is heavily mechanised, thanks to high labour costs and heavy capital investment, both from private investors and the European Union's Common Agricultural Policy. In 2000, agriculture accounted for 2.4% of economic output in Northern Ireland, compared to 1% in the United Kingdom as a whole.[10] As in the rest of the United Kingdom, livestock and dairy account for the majority of agricultural output. The main crops are (in descending order of value) potatoes, barley, and wheat.


Heavy industry is concentrated in and around Belfast, although other major towns and cities also have heavy manufacturing areas. Machinery and equipment manufacturing, food processing, textile and electronics manufacturing are the leading industries. Other industries such as papermaking, furniture manufacturing, aerospace and shipbuilding are also important, concentrated mostly in the eastern parts of Northern Ireland. Of these different industries, one of the most notable is that of Northern Ireland's fine linens, which is considered as one of the most well-known around Europe.

Although its share of economic output has declined, manufacturing output in Northern Ireland has remained almost unchanged over the past five years, after a period of steep manufacturing growth between 1998 and 2001.[11] However, this overall picture of health hides a dramatic shift in manufacturing priorities, with the decline of traditional industries, such as textiles and shipbuilding, at the expense of high tech and capital-intensive industries. In 2005, chemicals and engineering (both of which belong firmly to the latter group) were the only two manufacturing sub-sectors to record growth, whilst output of textiles fell by 18%.[12]

Engineering is the largest manufacturing sub-sector in Northern Ireland, particularly in the fields of aerospace and heavy machinery. Bombardier Aerospace is the province's largest industrial employer, with 5,400 workers at five sites in the Greater Belfast area.[13] Other major engineering employers in Northern Ireland include Bombardier Aerospace, Caterpillar, DuPont, Emerson Electric, Nortel, Northbrook Technology, Seagate and NACCO. Many of these manufacturers receive British government financial backing, and enjoy close academic and business links with Queen's University Belfast, which ranks as one of the best British universities for all engineering courses.[14]

Belfast's famous shipyard, Harland and Wolff, which in the early 20th century was the world's biggest shipbuilder, suffered from intense international competition during the 1970s and 1980s and declined rapidly. During the 1990s the company diversified into civil engineering and industrial fabrication, manufacturing bridges and oil platforms. The company made an unsuccessful bid to build the Queen Mary 2, which it was hoped would re-stimulate the yard's shipbuilding business. The vast works on Queen's Island were downsized, with much of the land (including the slipway were RMS Titanic was built) sold off for redevelopment in the 2000s as the 'Titanic Quarter'- a new residential, commercial and high-tech industrial district. The modern, smaller yard employs only 800 people. H&W have not built a ship since 2003, but has seen workload increase through being involved in shipbreaking, ship repair and maintenance and conversion work. The company has also been active in the design and construction of offshore power generation equipment- both wind turbines and wave-action turbines.


As with all developed economies, services account for the majority of employment and output. Services account for almost 70% of economic output, and 78% of employees.[15]


Despite the negative image of Northern Ireland held in many foreign countries, on account of the Troubles, tourism is an important part of the Northern Irish economy. In 2004, tourism revenue rose 7% to £325m, or over 1% of the local economy, on the back of a rise of 4% in total visits to 2.1 m in the year.[2] Tourism is considered likely to become one of the main growth areas of the economy in the near future, with the continuation of the peace process and the normalisation of the image of Northern Ireland internationally. The most popular tourist attractions include Belfast, Armagh, the Giant's Causeway, and Northern Ireland's many castles.

One drawback to the future of tourism in Northern Ireland is a long standing campaign by the Northern Ireland Housing Executive to replace all old country dwellings with new ones. This is done by means of a new building grant given upon agreement to demolish the older building. In the last decade particularly, much of Northern Ireland's ancient buildings have been destroyed. These buildings; mostly stone cottages, would, had they received grants to be rethatched and restored have provided a very large potential bed&breakfast sector for tourists.

Another has been the almost uncontrolled development of the countryside to provide more grazing space. The vast majority of odd, unusual, charming and eccentric landscape features including copses, woods, old stone walls, fieldstones, have been removed with diggers and chainsaws leaving large areas of blandness and little refuge for wildlife.

Much has to be done to convince the people of Northern Ireland of the value of old architecture, natural landscape and wildlife, although this statement sounds more like an opinion than an encyclopaedic fact.

Public sector

As of December 2008 the public sector in Northern Ireland accounted for 30.8% of the total workforce. This is significantly higher than the overall UK figure of 19.5%, and also higher than Scotland, the next nearest region at 24%. Overall, the Northern Ireland figure has fallen. In 1992 the public sector accounted for 37% of the workforce. When measured relative to population, the gap between the Northern Ireland and UK figures reduces to three percentage points.[16]

In total, the British government subvention totals £5,000m, or 20% of Northern Ireland's economic output.[17] Many unionists in Northern Ireland argue that a united Ireland could not sustain these levels of public sector employment, particularly as only 36% of the economy of the Republic of Ireland is made up of government expenditure. Many in favour of a united Ireland argue that it is this dependence on the public sector that dissuades potential investors, causing Northern Ireland's relative poverty.[citation needed]


A £20 banknote issued by the Northern Bank, one of four Northern Irish banks with the right to issue sterling-denominated banknotes.

The official currency in use in Northern Ireland is the British pound sterling. Although the euro, in use in the Republic of Ireland, is accepted by retailing chains closer to the border with the Republic of Ireland, Sterling is Northern Ireland's legal tender and the most widely circulated currency.

In addition, four Northern Ireland banks retain the right to print their own sterling-denominated banknotes: Bank of Ireland, First Trust Bank, Northern Bank, and Ulster Bank.


Primary energy consumption
Source ktoe %

Coal 1,440 29.4
Oil & LPG 1,290 26.3
Natural Gas 1,100 22.4
Vehicle fuel 926 18.9
Renewables 10 0.2
Electricity imports 140 2.8

Total 4,900 100

Northern Ireland's total primary energy consumption is approximately 4.90 million tonnes of oil equivalent. The vast majority of this energy comes from fossil fuels.

Energy policy in the province is maintained by the Department of Enterprise, Trade and Investment.


Northern Ireland's electrical grid is operated by Northern Ireland Electricity (NIE) who own and manage the infrastructure which connects over 850,000 customers. Electricity consumption in Northern Ireland was 7,867 GW·h in 2002/3.[18] At 4.6 MW·h per person, this is 18% less than that of the rest of the United Kingdom (5.6 MW·h per person). The main power station is located at Ballylumford, and is operated by Premier Power. There is also Coolkeeragh power station near Derry.

Northern Ireland's electrical grid is connected to that of the Republic of Ireland by three cross-border interconnectors. The main interconnector, between Tandragee and Louth has a capacity of 1,200 MW. Two back-up interconnectors have a combined capacity of 240 MW. This combined all-island grid is connected to the National Grid on the island of Great Britain by the 500 MW Moyle interconnector, under the North Channel.[19]


Northern Ireland has no natural gas resources of its own, and gets its gas for the Belfast area from a 24-inch-diameter (610 mm) interconnector pipeline along Beaufort's Dyke across the Irish Sea to Antrim from Scotland called the Scotland Northern Ireland Pipeline (SNIP), which was built in 1998. The main gas supply company in the Greater Belfast area is Phoenix Natural Gas, a former subsidiary of British Gas. It has become separate from British Gas since 2003.

In the other areas of Northern Ireland, specifically towards Derry, gas comes from two interconnector pipelines, one being supplied by the Republic's gas supplier, Bord Gáis. The North-West pipeline from Carrickfergus in County Antrim to Derry opened in November 2004, and the South-North pipeline from Gormanston (in the Republic) to Antrim was opened in October 2006. The complete South-North pipeline to Dublin opened in November 2007, passing Armagh, Banbridge, Craigavon and Newry. Since December 2005, Bord Gáis has supplied gas to residential customers in this area under the name firmus energy.


Northern Ireland has well-developed transport infrastructure. Northern Ireland has a total of 24,820 km (15,420 mi) of roads, or 1 km for each 68 people (1 mi for each 109 people), which is considerably more than in the United Kingdom as a whole (1 km per 162 people).[20] There are seven motorways in Northern Ireland, extending radially from Belfast, and connecting that city to Antrim, Dungannon, Lisburn, Newtownabbey, and Portadown. The Northern Irish rail network is notable as being both the only part of the United Kingdom's railroads operated by a state-owned company, Northern Ireland Railways, and the only substantial part that carries no freight traffic.

Northern Ireland is home to three civilian airports: Belfast City, Belfast International, and City of Derry. Major seaports in Northern Ireland include the Port of Belfast and the Port of Larne. The Port of Belfast is one of the chief ports of the United Kingdom, handling 17 million tonnes (16.7 million long tons) of goods in 2005,[21] equivalent to two-thirds of Northern Ireland's seaborne trade.

In addition to these existing links, several organisations have proposed a tunnel under the North Channel, with one possible site connecting eastern Northern Ireland to Wigtownshire. The idea has been given technical consideration since the 19th century, but, as of 2006, no major political party has advocated such a link, due to financial constraints.

See also


  1. ^ Regional GDP per capita in the EU25. Eurostat. 25 January 2005. Retrieved on 17 June 2006.
  2. ^ a b Economic Performance Briefing. Northern Ireland Executive. 25,January 2006. Retrieved on 17, June 2006.
  3. ^ NI dominates housing hotspot list BBC News 24 April 2007
  4. ^ "Northern Ireland's economic fears". Ryan, Orla; BBC, 22 June 2001. Retrieved on 17 June 2006.
  5. ^ a b Economic Overview. Northern Ireland DETI. 2006. Retrieved on 17 June 2006.
  6. ^ Titanic Quarter
  7. ^
  8. ^
  9. ^
  10. ^ Portrait of the Regions: Northern Ireland. Eurostat. 2005. Retrieved on 17 June 2006.
  11. ^ Quarterly Economic Review. Northern Ireland DETI. October 2005. Retrieved on 17 June 2006.
  12. ^ Index of Production. Northern Ireland DETI. 12 April 2006. Retrieved on 17 June 2006.
  13. ^ "High Flight". Cowan, Stephen; The Manufacturer, April 2006. Retrieved on 17 June 2006.
  14. ^ Good University Guide: Full subject tables. The Times. 27 May 2005. Retrieved on 17 June 2006.
  15. ^ Why Northern Ireland - Economy. InvestNI. 2004. Retrieved on 17 June 2006.
  16. ^ Department of Finance & Personnel (2009). 2009-10 Northern Ireland Public Sector Pay and Workforce Technical Annex (Report). Retrieved 2009-12-08. 
  17. ^ "Addicted to state subvention, north will suffer when it's gone". Alan Ruddock, The Times. 8 January 2006. Retrieved on 17 June 2006.
  18. ^ Energy. Northern Ireland DETI. 23 October 2003. Retrieved on 17 June 2006.
  19. ^ Disposal of Moyle Interconnector. Viridian Group. 11 April 2003. Retrieved on 17 June 2006.
  20. ^ Why Northern Ireland - Infrastructure. InvestNI. 2004. Retrieved on 17 June 2006.
  21. ^ "2005 Trade Figures Released". Port of Belfast. 13 February 2006. Retrieved on 17 June 2006.

External links

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Northern Ireland — This article is about the country. For other uses, see Northern Ireland (disambiguation). Northern Ireland Tuaisceart Éireann Norlin Airlann …   Wikipedia

  • Northern Ireland — a political division of the United Kingdom, in the NE part of the island of Ireland. 1,537,200; 5238 sq. mi. (13,565 sq. km). Cap.: Belfast. * * * Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion …   Universalium

  • Northern Ireland Executive — Logo of the Northern Ireland Executive Government overview Formed 2 December 1999 Jurisdiction …   Wikipedia

  • Northern Ireland Statistics and Research Agency — The Northern Ireland Statistics and Research Agency (NISRA) is an executive agency within the Department of Finance and Personnel in Northern Ireland. The organisation is responsible for the collection and publication of statistics related to the …   Wikipedia

  • Outline of Northern Ireland — Location of Northern Ireland (orange) – in the European continent (camel white) – in the United Kingdom (camel) Northern Ireland is one of the four countries of the United Kingdom …   Wikipedia

  • Banknotes of Northern Ireland — Banknotes have been issued for use specifically in Northern Ireland since 1929, and are denominated in pounds sterling. They are legal currency in Northern Ireland but technically not legal tender in any other country in the United Kingdom (or… …   Wikipedia

  • History of Northern Ireland — History of Ireland This article is part of a series Chronology …   Wikipedia

  • Segregation in Northern Ireland — is a long running issue in the political and social history of the province. It often been regarded as both a cause and effect of The Troubles between the Roman Catholic and Protestant populations of Northern Ireland.A combination of political,… …   Wikipedia

  • Culture of Northern Ireland — The culture of Northern Ireland relates to the traditions of Northern Ireland and its resident communities. Elements of the culture of Ireland, the culture of Ulster and the culture of the United Kingdom are to be found. Contents 1 Heritage 2… …   Wikipedia

  • Parliament Buildings (Northern Ireland) — Stormont Parliament Buildings A general view of the Parliament Buildings T …   Wikipedia