Outward focused economy

Northern Ireland’s economy has been transformed in recent decades, moving from a traditional manufacturing base to a service-led, outward looking knowledge economy.

The country has shown it can adapt to change. Northern Ireland in the twenty-first century is fostering entrepreneurship and taking innovation and knowledge-based products and processes to the world marketplace.

Inward investment

Northern Ireland’s excellent academic base and intellectual property reserves have encouraged an influx of knowledge-based inward investment projects.

Over 700 foreign investors now operate in Northern Ireland, employing 70,000 people. Recent key investors include Microsoft, Caterpillar, Seagate Technology and HBOS.

Performance

Productivity has shown an upward trend in recent years and the Northern Ireland economy continues to perform well against a range of economic indicators.

Employment is at record levels, unemployment remains at historic lows, while latest figures show an annual economic growth above the UK average.

A flourishing services sector contributes almost 70 per cent to the gross domestic product, reflecting the growth of a knowledge-led economy.

Manufacturing output remains stable despite falling employment in the sector.

Manufacturing exports from Northern Ireland were estimated to be worth £4.5 billion in 2004 – 05, representing an increase of 3.5 per cent over the year.

Inflation

Northern Ireland enjoys a stable, low inflation rate economy. Inflation currently stands at 2.4 per cent.

Since the start of 2000, Northern Ireland inflation has been among the lowest in the European Union based on the Harmonised Index of Consumer Prices.

Gross Value Added (GVA)

Northern Ireland’s GVA grew a nominal 5 per cent in 2004, above the UK growth rate of 4.6 per cent.