Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

Business

Northern Ireland economy expected to shrink next year

Ulster University economists expect the Northern Ireland economy to shrink next year, followed by a weak recovery in 2024.

The Ulster University Economic Policy Centre (UUEPC) estimates that output will fall by 1.2% in 2023.

The forecast for 2024 is growth of 1.7%, with a similar outlook for the UK as a whole.

It also suggests that the Bank of England may not raise interest rates much beyond the current 3%.

UUEPC director Gareth Hetherington said that a further increase in interest rates this month is “almost inevitable” but future increases could be smaller and “we may be approaching the end of the current cycle of monetary tightening”.

Interest rates were just 0.25% at the start of this year but have been raised steadily as the Bank of England has tried to get on top of soaring inflation.

Mr Hetherington said the last Bank of England monetary policy committee report included analysis that suggests inflation could fall to below its 2% target over three years, even if rates stay at 3%.

“This would suggest that interest rates may not need to go any higher, but the report also stressed that risks were skewed towards higher inflation,” he added.

The UUEPC forecasts that interest rates will be 3.5% at the end of 2022 and 2023 with inflation averaging 7.4% next year.

Read more:
Northern Ireland economy expected to shrink next year

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 rightdecisionnow.com | All Rights Reserved