Economic Growth Forecast Of 1% This Year For NI

Business services company EY (Economic Eye) has forecast that the economy will grow by just 1% this year (2025). This is compared to growth of 1.2% last year, so this would be quite a disappointing performance. However they anticipate that the NI economy will grow by 1.7% in 2026.

This latest forecast for 2025 has been downgraded, because they previously forecast back in September that this year would see approximately a 1.8% growth in the economy. Let us hope that the latest forecast is being a tad too pessimistic. Such growth could put Northern Ireland way behind our southern counterparts, as the Republic of Ireland economy is forecast to grow by 4% this year.

As for jobs growth, the forecast is for employment to increase by a further 0.4% this year, with 2026 seeing a higher 0.8% increase.

Economic & Jobs Growth At A Slower Pace

So the forecast is for continuing economic and jobs growth, just not at the pace that it was previously running. Here is what Rob Heron, EY Northern Ireland managing partner, said about the latest forecasts, copied from an article on the Irish News website:

“Positively, the Northern Irish economy looks set to continue to grow this year and interest rates are trending downwards, which is good news for businesses and consumers,

“A key strength of Northern Ireland’s economy is its labour market, with further jobs growth expected this year, albeit at a lower rate of growth than 2024.

“EY NI will open our new office in Derry in the middle of the year demonstrating our commitment to fostering talent and innovation to support regional development and prosperity.”

A Key Factor In Driving Wealth And Prosperity

There are other indicators of how a country is doing of course, but economic growth is definitely a key factor that can drive wealth and prosperity. The Labour government at Westminster have certainly nailed their colours to the mast in this respect, as they have continually talked about the need for economic growth, which in turn will provide more funding for the NHS and social services etc, as well as putting more money in the average persons pockets.

Northern Ireland is certainly looking in good health when it comes to innovation and tech. We have a great many people with quality software engineering skills and we are the top international investment location for US cyber security companies. We need to build on this and ensure we have a strong and forward looking business model to prosper in future months and years.