Economy of Belfast
Encyclopedia
Belfast was initially built on trade through Belfast Harbour
. Later, industry contributed to its growth, particularly shipbuilding and linen. At the beginning of the 20th century Belfast was both the largest producer of linen in the world
and also boasted the world's largest shipyard.
civil unrest
crippled the city's industry for many years but with the recent republican and loyalist ceasefires, and the St Andrews Agreement
in 2006, the city's economy is resurging once again.
. It provided a market for the surrounding countryside and the natural inlet of Belfast Lough
gave the city its own port
. The port supplied an avenue for trade with the mainland
and later Europe
and North America
. In the mid-seventeenth century, Belfast exported beef, butter, hides, tallow and corn and it imported coal, cloth, wine, brandy, paper, timber and tobacco. Around this time, the linen
trade in Northern Ireland blossomed and by the middle of the eighteenth century, one fifth of all the linen exported from Ireland was shipped from Belfast. The present city however is a product of the Industrial Revolution
. It was not until industry transformed the linen and shipbuilding trades that the economy and the population boomed. By the turn of the nineteenth century, Belfast had transformed into the largest linen producing centre in the world, earning the nickname "Linenopolis".
Belfast harbour was dredged in 1845 to provide deeper berths for larger ships. Donegall Quay was built out into the river as the harbour was developed further and trade flourished. The Harland and Wolff
shipbuilding
firm was created in 1861 and by the time the Titanic was built in Belfast in 1912, they boasted the largest shipyard in the world.
The rise of mass-produced
and cotton
clothing following World War I
were some of the factors which led to the decline of Belfast's international linen trade. Like many UK cities dependent on traditional heavy industry, Belfast suffered serious decline since the 1960s, exacerbated greatly in the 1970s and 1980s by the civil unrest of The Troubles
. More than 100,000 manufacturing jobs have been lost since the 1970s. For several decades, Northern Ireland's fragile economy required significant public support from the British exchequer
of up to GB£
4 billion per year. Ongoing sectarian violence made it difficult for Belfast to compete with Ireland's
Celtic Tiger
economy, with Dublin producing some 70bn Euro GDP annually.
in 1998 have given investors increased confidence to invest in Belfast. This has led to a period of sustained economic growth and large-scale redevelopment of the city centre
. New developments include Victoria Square
, the Cathedral Quarter
, and the Laganside with the new Odyssey
complex and the landmark Waterfront Hall
.
Two other major developments will see the regeneration of the Titanic Quarter
, and the erection the Obel Tower
, a skyscraper set to be the tallest tower on the island until eclipsed by the U2 Tower
in Dublin. In 2007, Belfast's launched its vision for a World Trade Centre (currently a 'virtual' centre but with plans to become a physical building) which aims to promote the city to the international business market.
Today, Belfast is Northern Ireland's educational and commercial hub. It is now in the top five fastest growing regional economies in the UK. In February 2006, Belfast's unemployment rate stood at 4.2%, lower than both the Northern Ireland and the UK average of 5.5%. Over the past 10 years employment has grown by 16.4 per cent, compared with 9.2 per cent for the UK as a whole.
Northern Ireland's peace dividend
has also led to soaring property prices in the city. In 2006, Belfast saw house prices grow by 43%, the fastest rate of growth in the UK. In March 2007, the average house in Belfast cost GB£
191,819, with the average in South Belfast being GB£
241,000. In 2004, Belfast had the lowest owner occupation rate in Northern Ireland at 54%.
Peace has also boosted the numbers of tourists coming to Belfast. There were 6.4 million visitors in 2005, which was a growth of 8.5% from 2004. The visitors spent GB£
285.2 million, supporting over 15,600 jobs. The city's two airports have also made the city into one of the most visited weekend destinations in Europe.
Port of Belfast
Belfast Harbour is a major maritime gateway in Northern Ireland, serving the Northern Ireland economy and increasingly that of the Republic of Ireland...
. Later, industry contributed to its growth, particularly shipbuilding and linen. At the beginning of the 20th century Belfast was both the largest producer of linen in the world
and also boasted the world's largest shipyard.
civil unrest
The Troubles
The Troubles was a period of ethno-political conflict in Northern Ireland which spilled over at various times into England, the Republic of Ireland, and mainland Europe. The duration of the Troubles is conventionally dated from the late 1960s and considered by many to have ended with the Belfast...
crippled the city's industry for many years but with the recent republican and loyalist ceasefires, and the St Andrews Agreement
St Andrews Agreement
The St Andrews Agreement was an agreement between the British and Irish Governments and the political parties in relation to the devolution of power to Northern Ireland...
in 2006, the city's economy is resurging once again.
History of the economy
When the population of Belfast town began to grow in the seventeenth century, its economy was built on commerceTrade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
. It provided a market for the surrounding countryside and the natural inlet of Belfast Lough
Belfast Lough
Belfast Lough is a large, natural intertidal sea lough at the mouth of the River Lagan on the east coast of Northern Ireland. The inner part of the lough comprises a series of mudflats and lagoons. The outer lough is restricted to mainly rocky shores with some small sandy bays...
gave the city its own port
Port of Belfast
Belfast Harbour is a major maritime gateway in Northern Ireland, serving the Northern Ireland economy and increasingly that of the Republic of Ireland...
. The port supplied an avenue for trade with the mainland
Great Britain
Great Britain or Britain is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, and the largest European island, as well as the largest of the British Isles...
and later Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
. In the mid-seventeenth century, Belfast exported beef, butter, hides, tallow and corn and it imported coal, cloth, wine, brandy, paper, timber and tobacco. Around this time, the linen
Linen
Linen is a textile made from the fibers of the flax plant, Linum usitatissimum. Linen is labor-intensive to manufacture, but when it is made into garments, it is valued for its exceptional coolness and freshness in hot weather....
trade in Northern Ireland blossomed and by the middle of the eighteenth century, one fifth of all the linen exported from Ireland was shipped from Belfast. The present city however is a product of the Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...
. It was not until industry transformed the linen and shipbuilding trades that the economy and the population boomed. By the turn of the nineteenth century, Belfast had transformed into the largest linen producing centre in the world, earning the nickname "Linenopolis".
Harland and Wolff
Harland and Wolff Heavy Industries is a Northern Irish heavy industrial company, specialising in shipbuilding and offshore construction, located in Belfast, Northern Ireland....
shipbuilding
Shipbuilding
Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both...
firm was created in 1861 and by the time the Titanic was built in Belfast in 1912, they boasted the largest shipyard in the world.
The rise of mass-produced
Mass production
Mass production is the production of large amounts of standardized products, including and especially on assembly lines...
and cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
clothing following World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
were some of the factors which led to the decline of Belfast's international linen trade. Like many UK cities dependent on traditional heavy industry, Belfast suffered serious decline since the 1960s, exacerbated greatly in the 1970s and 1980s by the civil unrest of The Troubles
The Troubles
The Troubles was a period of ethno-political conflict in Northern Ireland which spilled over at various times into England, the Republic of Ireland, and mainland Europe. The duration of the Troubles is conventionally dated from the late 1960s and considered by many to have ended with the Belfast...
. More than 100,000 manufacturing jobs have been lost since the 1970s. For several decades, Northern Ireland's fragile economy required significant public support from the British exchequer
Exchequer
The Exchequer is a government department of the United Kingdom responsible for the management and collection of taxation and other government revenues. The historical Exchequer developed judicial roles...
of up to GB£
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
4 billion per year. Ongoing sectarian violence made it difficult for Belfast to compete with Ireland's
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
Celtic Tiger
Celtic Tiger
Celtic Tiger is a term used to describe the economy of Ireland during a period of rapid economic growth between 1995 and 2007. The expansion underwent a dramatic reversal from 2008, with GDP contracting by 14% and unemployment levels rising to 14% by 2010...
economy, with Dublin producing some 70bn Euro GDP annually.
Current economy
However, the IRA Ceasefire in 1994 and the signing of the Good Friday AgreementBelfast Agreement
The Good Friday Agreement or Belfast Agreement , sometimes called the Stormont Agreement, was a major political development in the Northern Ireland peace process...
in 1998 have given investors increased confidence to invest in Belfast. This has led to a period of sustained economic growth and large-scale redevelopment of the city centre
Belfast City Centre
Belfast city centre is the central business district of Belfast, Northern Ireland.The city centre was originally centred around the Donegall Street area. Donegall Street is now mainly a business area, but with expanding residential and entertainment development as part of the Cathedral Quarter...
. New developments include Victoria Square
Victoria Square, Belfast
Victoria Square is a commercial, residential and leisure development in Belfast, Northern Ireland developed and built by Multi Development UK over 6 years. At approx 800,000ft² and costing £400m it is the biggest and one of the most expensive property developments ever undertaken in Northern...
, the Cathedral Quarter
Cathedral Quarter, Belfast
The Cathedral Quarter in Belfast, Northern Ireland is a developing area of the city, roughly situated between Royal Avenue near where the Belfast Central Library building is, and the Dunbar Link in the city centre. From one of its corners, the junction of Royal Avenue, Donegall Street and York...
, and the Laganside with the new Odyssey
Odyssey (Belfast)
The Odyssey Arena is a large sports and entertainment centre situated in Titanic Quarter, Belfast, Northern Ireland. It was jointly funded by the Millennium Commission, the Laganside Corporation, the DCAL, the Sheridan Group and the Sports Council for Northern Ireland. The Arena opened in 2000 with...
complex and the landmark Waterfront Hall
Waterfront Hall
The Waterfront Hall is a multi-purpose facility, in Belfast, Northern Ireland, designed by local architects' firm Robinson McIlwaine. Practice partner Peter McGukin was the project architect....
.
Titanic Quarter, Belfast
The Titanic Quarter in Belfast, Northern Ireland is a waterfront regeneration project, including apartments, a riverside entertainment district, and a major Titanic-themed attraction under development on reclaimed land in Belfast Harbour, known until recently as Queen's Island...
, and the erection the Obel Tower
Obel Tower
The Obel Tower is a skyscraper in Belfast, Northern Ireland.Costing £60 million and measuring 85 metres in height, the tower dominates the Belfast skyline. On completion it overtook the previous tallest skyscraper in Ireland, Windsor House , also in Belfast...
, a skyscraper set to be the tallest tower on the island until eclipsed by the U2 Tower
U2 Tower
The U2 Tower was a proposed landmark skyscraper to be constructed in Dublin. The site was in the South Docklands campshires, at the corner of Sir John Rogerson's Quay and Britain Quay, by the confluence of the River Liffey, the River Dodder, and the Grand Canal. The design announced on 12 October...
in Dublin. In 2007, Belfast's launched its vision for a World Trade Centre (currently a 'virtual' centre but with plans to become a physical building) which aims to promote the city to the international business market.
Today, Belfast is Northern Ireland's educational and commercial hub. It is now in the top five fastest growing regional economies in the UK. In February 2006, Belfast's unemployment rate stood at 4.2%, lower than both the Northern Ireland and the UK average of 5.5%. Over the past 10 years employment has grown by 16.4 per cent, compared with 9.2 per cent for the UK as a whole.
Northern Ireland's peace dividend
Peace dividend
The peace dividend is a political slogan popularized by US President George H.W. Bush and UK Prime Minister Margaret Thatcher in the early 1990s, purporting to describe the economic benefit of a decrease in defense spending. It is used primarily in discussions relating to the guns versus butter...
has also led to soaring property prices in the city. In 2006, Belfast saw house prices grow by 43%, the fastest rate of growth in the UK. In March 2007, the average house in Belfast cost GB£
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
191,819, with the average in South Belfast being GB£
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
241,000. In 2004, Belfast had the lowest owner occupation rate in Northern Ireland at 54%.
Peace has also boosted the numbers of tourists coming to Belfast. There were 6.4 million visitors in 2005, which was a growth of 8.5% from 2004. The visitors spent GB£
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
285.2 million, supporting over 15,600 jobs. The city's two airports have also made the city into one of the most visited weekend destinations in Europe.
See also
- Economy of Northern IrelandEconomy of Northern IrelandThe economy of Northern Ireland is the smallest of the four countries in the United Kingdom. Northern Ireland has traditionally had an industrial economy, most notably in shipbuilding, rope manufacture and textiles, but most heavy industry has since been replaced by services...
- BelfastBelfastBelfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...
- Belfast City CentreBelfast City CentreBelfast city centre is the central business district of Belfast, Northern Ireland.The city centre was originally centred around the Donegall Street area. Donegall Street is now mainly a business area, but with expanding residential and entertainment development as part of the Cathedral Quarter...
- Dublin-Belfast corridorDublin-Belfast corridorThe Dublin-Belfast corridor is a term used to loosely describe a geographical area that encompasses the cities of Dublin and Belfast and the area between...
- Economy of CorkEconomy of Cork-Statistics:County Cork and County Kerry as part of the South-West Region, Ireland with a population of 620,000 has a GVA of €25bn.The South-West region has a labour force of nearly 300,000....
- Economy of DublinEconomy of DublinDublin is the largest city and capital of Ireland, and is the country's economic hub. As well as being the location of the national parliament and most of the civil service, Dublin is also the focal point of media and culture in the county. Ireland's transportation network radiates from the city...
- Economy of LimerickEconomy of Limerick-Statistics:County Clare, County Limerick and North Tipperary as part of the Mid-West region with a population of 360,000 has a GVA of €10.7bn....