Last year was a year of many surprises – Brexit, Trump, Leicester winning the English Premier League, and Ireland beating the All-Blacks in rugby are just some examples that come to mind. The Northern Ireland economy also enjoyed an unexpectedly positive year in 2016, with many record-breaking performances, including in the labour market. But the turnaround in the fortunes of the agriculture sector is perhaps even more startling. Continue reading
Northern Ireland’s tourism industry has been breaking records across a range of performance indicators in recent years. 2016 witnessed a hotel room boom and this trend looks set to continue in 2017. Last year the local hotelier industry breached the 2 million mark for room sales for the first time.
As we approach the 10th anniversary of Northern Ireland’s house price peak (and subsequent correction), we’ve been seeing some encouraging signs in the housing market across a range of indicators. Despite the ongoing recovery over the last few years, though, it is fair to say that this does not mean we are ‘recovered’. Indeed, ‘a recovery’ in house prices / house building back to the freak peaks of 2006/2007 is neither expected nor viewed as desirable. Continue reading
It had everything. There was intrigue, espionage, breakups, non-stop drama, and no end of fiction and fantasy. But whether you regard last year as the prelude to an economic horror, or something from an altogether more uplifting genre, what is clear is that 2016 was an epic, with significant implications for the local, national, and global economies. So with the annual Academy Awards having just been handed out, we’ve decided to suggest some potential winners of a hypothetical Economic Gongs. Here are the economies, personalities and organisations we think should be in contention for a range of bespoke categories.
We’re breaking records for the number of people in work, yet more productive jobs are what we really need.
Record breakers. 2016 ended with
the UK’s highest share of people working since we started counting it in the 1970s. At 74.6% the working age employment rate hit a new record and the number in work reached 30.6 million. Continue reading
This year will mark the tenth anniversary of Northern Ireland’s house price peak which heralded the start of a sustained period of collateral damage for the wider economy and not just the housing market. Residential property prices peaked in Q3 2007 and subsequently troughed in Q1 2013, down a whopping 57% some 5½ years later. Since then the housing market has been in recovery mode with three successive years of house price growth. For many homeowners the last ten years has represented a lost decade with aspirations blighted by negative equity. However, the combination of house price growth and time (assuming repayments) has seen the incidence of negative equity recede.
President Trump has promised to unveil a spectacular reform of the US tax system in the next few weeks to boost the economy. Meanwhile the labour market has been producing spectacular results itself.
Ambitious. The number of Americans in work rose by 227,000 in January and the unemployment rate held steady at 4.8%. During President Obama’s second term employment increased by 12 million (8%), impressive alongside the UK’s still-respectable 3%. President Trump aims to add 25 million jobs over a decade. That’s very ambitious indeed but there are historical precedents: both the Reagan and Clinton administrations saw rates of job growth that, if repeated, would see the target being met. But they both arrived at the White House towards the end of recessions, Trump’s task is harder.
“The rise and fall of new labour?” may sound like a political blockbuster tracking the fortunes of one of the UK’s largest political parties. But it actually describes one of the most significant economic developments over the last decade – inward migration. Continue reading