Northern Ireland's economy shrinks amid global uncertainty
NORTHERN Ireland's economy contracted by 0.6% in the first quarter of 2025 after a full year of steady growth.
This downturn, revealed in the latest Northern Ireland Composite Economic Index (NICEI), marks the first economic reversal since the end of 2023.
Construction output dropped by 5.1% quarter-on-quarter, while industrial production, particularly manufacturing, also shrank.
The NICEI attributes the quarterly fall to these sectors, though it noted that services - the economy's largest sector - remained flat rather than in decline.
Despite the recent contraction, the overall economic picture is more complicated.
Year on year, Northern Ireland's economy has grown by 1.6%, outperforming Britain's 1.3% growth.
On a rolling four-quarter basis, growth stood at 2.7%, double the British average of 1.3%.
Economic output is now 10% above pre-pandemic levels, with private sector output alone 10.5% higher than in late 2019.
The services sector, covering everything from hospitality to legal services, has been a key driver of this post-Covid recovery.
Richard Ramsey, Professor in Economics at Queen's University Belfast, said the figures point to a 'reversal in fortunes' for the private sector.
While public sector jobs and agriculture provided some stability, they were not enough to offset losses elsewhere.
Mr Ramsey also raised concerns about global factors.
The temporary suspension of US tariffs introduced by Donald Trump is set to expire soon.
The uncertainty around potential new tariffs has already led to revisions in growth.
'The local economy is expected to see a growth rate of around one third of last year's figure,' he said, noting that businesses are already grappling with new tax burdens introduced in April.
In contrast, agriculture in Northern Ireland is enjoying a remarkable boom.
Total income from farming (TIFF) is expected to rise by over 60% this year, reaching £766m - up from £471m in 2023.
The increase is driven by reduced input costs and improved prices for dairy, beef and lamb.
Average farm business income is projected to more than double, thanks to falling prices for feed, fertiliser, and machinery.
Agriculture Minister Andrew Muir said in a public statement: 'My department is focused on helping farmers mitigate cost and price pressures while improving productivity and sustainability."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
4 hours ago
- Irish Examiner
Gas Networks Ireland spent €190m building 'capacity, security, and resilience' last year
Gas Networks Ireland (GNI) spent almost €190m last year on building capacity, security, and resilience in the system, including on critical pipelines and physical and cyber security. GNI chairman Kevin Toland said this was to meet the growing energy demand in Ireland, and secure the network from 'ever growing malevolent threats'. GNI's annual report for 2024 said it will spend more than €200m in 2025 to further bolster the security of the network. Mr Toland pointed out that gas plays a 'critical role' in Ireland's energy system. It is involved in the production of over 40% of Ireland's electricity — rising as high as 83% when renewable energy is not available. Writing in the GNI annual report, Mr Toland said they submitted a proposal in April 2024 to the Government to create a strategic gas emergency reserve to protect Ireland in the event of a gas supply reduction. Almost a year later the Government said it was backing the plan and would set up a liquified natural gas (LNG) terminal for such a purpose. In the report, Mr Toland said GNI invested €188m in the safety, capacity, security, and resilience of the network in 2024, including at stations in Moffat, Scotland, where both the British gas pipelines to Ireland come from. We also continued to advance our cyber and physical security programmes to protect our network from ever growing malevolent threats. The report said managing the risk of a physical or cyber attack was going to be a major priority moving forward. 'In 2025 we will invest in excess of €200m of capital investment to improve the safety, capacity, security and resilience of the network.' The report also said the €200m will progress the development of the strategic gas emergency reserve, key transmission connections, and facilitate a significant capacity upgrade project at their stations in Scotland. 'The threat of a successful cyber attack remains a key risk, and we remain vigilant to this very real and growing threat,' the report said. 'The UK remains Ireland's principal supply source. 'Any disruption to the UK's energy supply, or failure/disruption to our strategic gas infrastructure could seriously impact Gas Networks Ireland's business/operations.' It said GNI, along with the Irish Naval Service, 'responded to a subsea security incident when a foreign vessel [Russian ship, the Yantar] was detected operating on top of the sub sea pipeline Interconnector 1 in the Irish sea. 'As a result an unplanned sub sea survey to ensure no interference to the pipeline was completed.' It said GNI was a founding partner in 2004 of the European Union's horizon project VIGIMARE, through which key capital projects received €4.75m in grant funding to further develop 'our subsea critical asset protection' from the EU horizon europe research and innovation programme. 'This innovation project uses artificial intelligence algorithms on multiple data sources to identify and alarm if a vessel is acting suspiciously in the vicinity of subsea infrastructure,' it said.
The Irish Sun
7 hours ago
- The Irish Sun
Iconic British carmaker Lotus ‘threatens to close UK factory and set up new plant in US' with 1,300 jobs at risk
ICONIC British sportscar manufacturer Lotus threatening to close a UK factory and set up in the US. The carmaker may be axing production at its headquarters in Hethel, Norfolk, and heading to the United States, as reported by the Advertisement 4 1,300 jobs could be at risk if plans were to go ahead Credit: Getty 4 The brand promised it was "committed to the UK" despite recent cuts Credit: Getty 4 Lotus blamed the "volatility" caused by Donald Trump's trade tariffs for the cuts Credit: Getty The firm has declined to make any official statement on potential plans. But, sources claimed moving production to the US was being discussed. This would put 1,300 jobs at risk if plans were to go ahead. It emerges after production in Hethel was temporarily suspended due to the tariffs on cars being imported to the US. Advertisement Read More The hikes meant business with the States was at risk, with American sellers required to pay taxes of 25% on imports of cars and car parts. In fact, exports to the US have halved since Trump's tariffs were introduced, figures revealed. This comes after the firm warned it is being forced to make more cuts, Lotus again blamed the "volatility" caused by Donald Trump's trade tariffs for the cuts. Advertisement Most read in Motors The luxury The motorcar firm recorded 12,134 sales in the 2024 financial year, a 74% increase on the 6970 sales made the previous year. The modern classic Lotus Elise However, Lotus made just £21.7m in gross profit, a significant decrease on the £76.3 million it made the previous year. Chief financial officer Daxue Wang blamed the decrease in profits on the impact of worldwide tariffs and "global trade uncertainties." Advertisement He added that Lotus, which will 'As we progress with the acquisition of Lotus UK, we are committed to driving cost streamlining and operational enhancements across all markets to continuously deliver long-term value,' Mr Wang said. The beginning of these cost-cutting measures was announced last month, when the manufacturer announced that it would be cutting 270 jobs. The brand promised it was "committed to the UK" despite the cuts, but this has done little to ease fears. Advertisement A spokesperson said: "The proposed restructuring is vital to enhance our competitiveness in today's market. "Lotus Cars has announced a proposed business restructure to ensure sustainable operations, amid volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars. "The company plans to increase synergies across the wider Lotus brand and with its largest shareholder and technology partner, Geely Holding Group. "It will look at greater resource sharing and collaboration in technology, engineering, and operations." Advertisement Days after the job cuts were announced, Lotus' current owner Geely International, triggered a 2023 agreement to force Lotus Technology Inc to buy back 51 per cent of Lotus Advanced Technologies. Currently Geely owns 51 per cent of Lotus, with the other 49 percent owned by Malaysian group Etika Automotive. Qingfeng Feng, Senior Vice President of Geely Holding Group and CEO of Group Lotus, said: "This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand. "It will strengthen brand equity and enhance our operational flexibility and internal synergies. Advertisement "We are confident that the transaction will create substantial long-term value for our shareholders." Donald Trump's introduction of 25 percent tariffs on car imports to the US has heaped huge pressure on car brands. The UK sends one sixth of all of the cars it builds each year to the US. These include luxe models from car brands such as Aston Martin, Rolls Royce and Land Rover. Advertisement Sales to the US amount to about 100,000 a year, with a worth of around £8 billion. Trump has claimed that the import tax for cars, which came into play on April 2, would lead to "tremendous growth" for the industry. However, experts say it will likely lead to a temporary shutdown of significant production in the US and strain relations with other countries. 4 Iconic British sportscar manufacturer Lotus is threatening to close a UK factory and set up in the US Credit: Alamy Advertisement More to follow... For the latest news on this story keep checking back at The Sun Online is your go-to destination for the best celebrity news, real-life stories, jaw-dropping pictures and must-see video. Like us on Facebook at
Irish Post
8 hours ago
- Irish Post
Northern Ireland's economy shrinks amid global uncertainty
NORTHERN Ireland's economy contracted by 0.6% in the first quarter of 2025 after a full year of steady growth. This downturn, revealed in the latest Northern Ireland Composite Economic Index (NICEI), marks the first economic reversal since the end of 2023. Construction output dropped by 5.1% quarter-on-quarter, while industrial production, particularly manufacturing, also shrank. The NICEI attributes the quarterly fall to these sectors, though it noted that services - the economy's largest sector - remained flat rather than in decline. Despite the recent contraction, the overall economic picture is more complicated. Year on year, Northern Ireland's economy has grown by 1.6%, outperforming Britain's 1.3% growth. On a rolling four-quarter basis, growth stood at 2.7%, double the British average of 1.3%. Economic output is now 10% above pre-pandemic levels, with private sector output alone 10.5% higher than in late 2019. The services sector, covering everything from hospitality to legal services, has been a key driver of this post-Covid recovery. Richard Ramsey, Professor in Economics at Queen's University Belfast, said the figures point to a 'reversal in fortunes' for the private sector. While public sector jobs and agriculture provided some stability, they were not enough to offset losses elsewhere. Mr Ramsey also raised concerns about global factors. The temporary suspension of US tariffs introduced by Donald Trump is set to expire soon. The uncertainty around potential new tariffs has already led to revisions in growth. 'The local economy is expected to see a growth rate of around one third of last year's figure,' he said, noting that businesses are already grappling with new tax burdens introduced in April. In contrast, agriculture in Northern Ireland is enjoying a remarkable boom. Total income from farming (TIFF) is expected to rise by over 60% this year, reaching £766m - up from £471m in 2023. The increase is driven by reduced input costs and improved prices for dairy, beef and lamb. Average farm business income is projected to more than double, thanks to falling prices for feed, fertiliser, and machinery. Agriculture Minister Andrew Muir said in a public statement: 'My department is focused on helping farmers mitigate cost and price pressures while improving productivity and sustainability."
