Insight Series: Northern Ireland Market Report 2017

Perhaps the main reason that Northern Ireland s recovery is outperforming other parts of the UK is the growing power of the devolved Northern Ireland Executive, which has been able to respond more flexibly and at a local level to political and financial developments. For example, concerted efforts to trim the public sector in recent years have been successfully offset by growth in the public sector: in 2015 the public sector shrank by 1.8% while the private sector grew by 2.3% (Department for the Economy). It is hoped that further devolution will allow the country to adapt deftly to any consequences arising from Brexit as that process unfolds.

THE GROWTH IN OUTPUT IN THE FIRST QUARTER OF THIS YEAR WAS PARTICULARLY ENCOURAGING WITH NORTHERN IRELAND MATCHING UK GDP GROWTH AND ALSO BUCKING THE TREND WITHIN THE UK BY POSTING DOUBLE DIGIT GROWTH IN EXPORTS DURING THE SAME QUARTER. Economy Minister Simon Hamilton

Mitigating any doubts about the future of Northern Ireland s economy, its business friendliness is set to receive a further, and momentous, boost. The corporation tax rate will be slashed from 20% to 12.5% in 2018. Crucially, this rate will remain 4.5% below the rest of the UK even after the British rate is itself cut to 17%.

When the rate is cut in 2018 Northern Ireland will instantly become the most competitive place to do business in the UK: its existing firms will be able to recycle more revenue into growth and jobs, while multinationals arrive in droves. This change is estimated to create upwards of 30,000 new jobs in the capital alone, and its effects will reverberate throughout the entire economy (Belfast City Council).

THE ANNOUNCEMENT OF A LOWER CORPORATION TAX RATE TO COME INTO EFFECT IN 2018 IS A MAJOR DEVELOPMENT AND WILL MAKE NORTHERN IRELAND A MORE ATTRACTIVE DESTINATION FOR INTERNATIONAL INVESTMENT. Savills