Northern Ireland scores poorly on productivity, employment and labour supply when compared with a range of European and OECD countries, according to a new report that benchmarks its economic performance.
The first Northern Ireland Competitiveness Scorecard, which measures how the North performed across more than 150 indicators, also finds the North scores highly for quality of life, business environment and business achievements.
Its position on producitivity, as measured in 2014, had not improved over the previous five years, however.
The scorecard was commissioned by the Economic Advisory Group (EAG), which provides independent advice to the North's Minister for the Economy.
Its authors, Richard Johnston and Laura Heery, found that the most significant improvement in terms of the North's competitiveness was in its business performance which was "driven by increasing business stocks, churn and exports". They also noted that "physical infrastructure and macro and fiscal pillars" had improved slightly.
Education
But in terms of both education/skills and employment/labour supply Northern Ireland’s performance had deteriorated while competitor locations advanced more rapidly.
Overall the scorecard shows Northern Ireland’s performance had “improved marginally” but remained below the average of comparison countries.
“The average decile placement is 6.1, which means that almost two-thirds of the countries analysed are relatively more competitive than Northern Ireland,” the report says.
It concludes the results of the first competitiveness scorecard highlight “an indication of the scale of the challenge facing NI across a large range of indicators”.
“If NI is to deliver upon the economic aspirations in the programme for government and the economic strategy, NI must play to its relative strengths and improve performance in a number of areas,” it says.
EAG chair Ellvena Graham said the scorecard marked an "important point" in Northern Ireland's economic development.
Fresh Start
“The Fresh Start agreement has been launched, the delivery of a new programme for government and refocused economic strategy is imminent, and the countdown to the lowering of corporation tax has begun.
“Another countdown has also commenced and in due course Northern Ireland will be competing across the world from an as yet undefined position outside of the EU. A strategic review of NI’s competitive strengths and weaknesses has never been more relevant and timely,” Ms Graham added.
The scorecard was developed by the Ulster University's economic policy unit and used methodology based on the National Competitiveness Council's competitiveness scorecard that is used in the Republic.
