The Northern Ireland economy is stagnating and prospects for the year ahead are poor.
That was the message from a survey of accountants which blamed a host of reasons – from political instability to cost-of-living pressures – for a relatively bleak outlook for the local economy in the short term.
More than half said prospects for the economy in the next 12 months are poor, with only 7% rating it good or very good. Around three quarters, meanwhile, said the economy is either contracting or stagnating, with only one in four of the view that the economy is growing.
As such, 77% of accountants surveyed by Chartered Accountants Ulster Society said they had witnessed an uptick in the number of businesses in financial distress, a sharp jump from the 44% noted in last year’s survey.
A large part of that appears to be coming from rising cost pressures, which businesses are either having to absorb or pass on to customers.
Brexit has been a hindering factor also, with three quarters of accountants blaming the exit from the European Union as a negative or strongly negative factor impeding the performance of the Northern Ireland economy. A similar number believe the province’s reputation has been damaged by the handling of exit.
However, there are potential benefits from Brexit, the majority of accountants said.
Most believe the Northern Ireland Protocol – through the Windsor Framework - presents an opportunity for the prvince and 76% believe that the Northern Ireland Protocol challenges can be addressed.
Perhaps unsurprisingly, a majority of 82% also believe the Executive should be restored while 69% believe powers should be given to Permanent Secretaries within government departments until Stormont is reconvened.
Emma Murray, Chairperson of Chartered Accountants Ulster Society, said political leadership is vital to secure future prosperity in Northern Ireland.
“Our members want the Executive to be restored so that we can begin to work together to address these issues for the benefit of everyone in Northern Ireland,” she said. “Our survey shows that a majority of businesses believe that the NI Protocol, now the Windsor Framework, with access to both the British and EU markets, presents a significant opportunity for Northern Ireland.
“They believe it is vital that we have leadership taking key decisions, encouraging business investment and better public services. The longer that political instability continues, the more difficult it is for local business to contribute to growth, jobs and a better quality of life in Northern Ireland.”
