Economy of Northern Ireland
Encyclopedia
The 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has since been replaced by services. To this day, Northern Ireland
still suffers from the results of the Troubles
which occurred between the late 1960s until the mid-1990s.
of the United Kingdom, at €37.3bn, or about two-thirds of the size of the next smallest, North East England
. However, this is partly because Northern Ireland has the smallest population; at €19,603 Northern Ireland has a greater GDP per capita than both North East England and Wales
.
Throughout the 1990s, the Northern Irish economy grew faster than did the economy of the rest of the UK, due in part to the Celtic Tiger rapid growth of the economy of the Republic of Ireland and the so-called 'peace dividend'. Growth slowed to the pace of the rest of the UK during the down-turn of the early years of the new millennium, but growth has since rebounded; in 2005, the Northern Irish economy is estimated to have grown by 3.2%, almost twice as fast as the UK as a whole, and future growth is expected to be stronger than that of the rest of the United Kingdom, though lower than that of the Republic. In April 2007 a Halifax survey found Northern Ireland's average house price to one of the highest in the UK, behind London, the South East and the South West. It also found Northern Ireland to have all of the top ten property "hot spots", with the Craigavon
and Newtownards
areas increasing by 55%.
in Northern Ireland has decreased substantially in recent years, and is now roughly at 14.5%, down from a peak of 17.2% in 1986. Youth unemployment and long-term unemployment have fallen most quickly. Working-age economic inactivity is 28%, which is the highest of any UK region.
Northern Ireland's macroeconomy is also characterised by considerably longer actual working hours and lower gender income disparity than in the United Kingdom as a whole.
, Northern Ireland received little foreign investment.
Since the signing of the Good Friday Agreement, investment in Northern Ireland
has increased significantly. Most investment has been focused in Greater Belfast
. Major projects include the £400 million Victoria Square retail development in Belfast City Centre
. The city will also see the largest waterfront development in Europe with the Titanic Quarter scheme, costing over £1 billion and taking seven years to complete. The Laganside Corporation
has been at the forefront of the redevelopment of the riverfront along the banks of the River Lagan, to date the corporation has overseen the investment of over £800 million in the riverside area. The Cathedral Quarter
has also seen substantial investment.
In addition, the Department of Enterprise, Trade and Investment
has commissioned MATRIX, the Northern Ireland Science Industry Panel,to advise government on the commercial exploitation of R&D and science and technology in Northern Ireland.
The Matrix Panel aims to grow NIs wealth by encouraging the exploitation of its science and R&D base. The work has shown that there is still a need for greater exploitation of science and technology and a step-change in innovation in the economy and workplaces.
The Panel’s recommendations are the result of a collaborative effort of technology industry leaders and experts in Northern Ireland.
in Northern Ireland is heavily mechanised, thanks to high labour costs and heavy capital investment, both from private investors and the European Union
's Common Agricultural Policy
. In 2000, agriculture accounted for 2.4% of economic output in Northern Ireland, compared to 1% in the United Kingdom as a whole. As in the rest of the United Kingdom, livestock
and dairy
account for the majority of agricultural output. The main crops
are (in descending order of value) potato
es, barley
, and wheat
.
is concentrated in and around Belfast
, although other major towns and cities also have heavy manufacturing areas. Machinery and equipment manufacturing, food processing
, textile
and electronics
manufacturing are the leading industries. Other industries such as papermaking
, furniture
manufacturing, aerospace
and shipbuilding
are also important, concentrated mostly in the eastern parts of Northern Ireland. Of these different industries, one of the most notable is that of Northern Ireland's fine linens, which is considered as one of the most well-known around Europe
.
Although its share of economic output has declined, manufacturing output in Northern Ireland has remained almost unchanged over the past five years, after a period of steep manufacturing growth between 1998 and 2001. However, this overall picture of health hides a dramatic shift in manufacturing priorities, with the decline of traditional industries, such as textiles and shipbuilding, at the expense of high tech
and capital-intensive
industries. In 2005, chemicals and engineering (both of which belong firmly to the latter group) were the only two manufacturing sub-sectors to record growth, whilst output of textiles fell by 18%.
Engineering is the largest manufacturing sub-sector in Northern Ireland, particularly in the fields of aerospace
and heavy machinery. Bombardier Aerospace
is the province's largest industrial employer, with 5,400 workers at five sites in the Greater Belfast
area. Other major engineering employers in Northern Ireland include Bombardier Aerospace
, Caterpillar
, DuPont
, Emerson Electric
, Nortel
, Northbrook Technology
, Seagate
and NACCO. Many of these manufacturers receive British government financial backing, and enjoy close academic and business links with Queen's University Belfast, which ranks as one of the best British universities for all engineering courses.
Belfast's famous shipyard, Harland and Wolff
, which in the early 20th century was the world's biggest shipbuilder
, suffered from intense international competition during the 1970s and 1980s and declined rapidly. During the 1990s the company diversified into civil engineering
and industrial fabrication, manufacturing bridges and oil platforms. The company made an unsuccessful bid to build the Queen Mary 2, which it was hoped would re-stimulate the yard's shipbuilding business. The vast works on Queen's Island were downsized, with much of the land (including the slipway were RMS Titanic was built) sold off for redevelopment in the 2000s as the 'Titanic Quarter'- a new residential, commercial and high-tech industrial district. The modern, smaller yard employs only 800 people. H&W have not built a ship since 2003, but has seen workload increase through being involved in shipbreaking, ship repair and maintenance and conversion work. The company has also been active in the design and construction of offshore power generation equipment- both wind turbines and wave-action turbines.
, or over 1% of the local economy, on the back of a rise of 4% in total visits to 2.1 m in the year. Tourism is considered likely to become one of the main growth areas of the economy in the near future, with the continuation of the peace process
and the normalisation of the image of Northern Ireland internationally. The most popular tourist attractions include Belfast
, Armagh
, the Giant's Causeway
, and Northern Ireland's many castles
.
One drawback to the future of tourism in Northern Ireland is a long standing campaign by the Northern Ireland Housing Executive to replace all old country dwellings with new ones. This is done by means of a new building grant given upon agreement to demolish the older building. In the last decade particularly, much of Northern Ireland's ancient buildings have been destroyed. These buildings; mostly stone cottages, would, had they received grants to be rethatched and restored have provided a very large potential bed&breakfast sector for tourists.
Another has been the almost uncontrolled development of the countryside to provide more grazing space. The vast majority of odd, unusual, charming and eccentric landscape features including copses, woods, old stone walls, fieldstones, have been removed with diggers and chainsaws leaving large areas of blandness and little refuge for wildlife.
Much has to be done to convince the people of Northern Ireland of the value of old architecture, natural landscape and wildlife, although this statement sounds more like an opinion than an encyclopaedic fact.
In total, the British government subvention totals £5,000m, or 20% of Northern Ireland's economic output. Many unionists in Northern Ireland argue that a united Ireland
could not sustain these levels of public sector employment, particularly as only 36% of the economy of the Republic of Ireland
is made up of government expenditure. Many in favour of a united Ireland argue that it is this dependence on the public sector that dissuades potential investors, causing Northern Ireland's relative poverty.
The official currency in use in Northern Ireland is the British pound sterling
. Although the euro
, in use in the Republic of Ireland
, is accepted by retailing chains closer to the border with the Republic of Ireland, Sterling is Northern Ireland's legal tender and the most widely circulated currency.
In addition, four Northern Ireland banks retain the right to print their own sterling-denominated banknotes: Bank of Ireland
, First Trust Bank
, Northern Bank
, and Ulster Bank
.
Northern Ireland's total primary energy consumption is approximately 4.90 million tonne
s of oil equivalent. The vast majority of this energy comes from fossil fuels.
Energy policy in the province is maintained by the Department of Enterprise, Trade and Investment
.
is operated by Northern Ireland Electricity
(NIE) who own and manage the infrastructure which connects over 850,000 customers. Electricity consumption in Northern Ireland was 7,867 GW·h
in 2002/3. At 4.6 MW·h per person, this is 18% less than that of the rest of the United Kingdom (5.6 MW·h per person). The main power station is located at Ballylumford
, and is operated by Premier Power
. There is also Coolkeeragh power station
near Derry.
Northern Ireland's electrical grid
is connected to that of the Republic of Ireland by three cross-border interconnectors. The main interconnector, between Tandragee and Louth has a capacity of 1,200 MW
. Two back-up interconnectors have a combined capacity of 240 MW. This combined all-island grid is connected to the National Grid on the island of Great Britain
by the 500 MW Moyle interconnector
, under the North Channel
.
across the Irish Sea to Antrim from Scotland called the Scotland Northern Ireland Pipeline (SNIP), which was built in 1998. The main gas supply company in the Greater Belfast
area is Phoenix Natural Gas
, a former subsidiary of British Gas. It has become separate from British Gas
since 2003.
In the other areas of Northern Ireland, specifically towards Derry, gas comes from two interconnector pipelines, one being supplied by the Republic's gas supplier, Bord Gáis
. The North-West pipeline from Carrickfergus
in County Antrim to Derry opened in November 2004, and the South-North pipeline from Gormanston
(in the Republic) to Antrim was opened in October 2006. The complete South-North pipeline to Dublin opened in November 2007, passing Armagh, Banbridge, Craigavon and Newry. Since December 2005, Bord Gáis has supplied gas to residential customers in this area under the name firmus energy
.
, Dungannon
, Lisburn
, Newtownabbey
, and Portadown
. The Northern Irish rail network is notable as being both the only part of the United Kingdom's railroads operated by a state-owned company, Northern Ireland Railways
, and the only substantial part that carries no freight traffic.
Northern Ireland is home to three civilian airports: Belfast City, Belfast International
, and City of Derry
. Major seaports in Northern Ireland include the Port of Belfast
and the Port of Larne
. The Port of Belfast is one of the chief ports of the United Kingdom
, handling 17 million tonnes (16.7 million long ton
s) of goods in 2005, equivalent to two-thirds of Northern Ireland's seaborne trade.
In addition to these existing links, several organisations have proposed a tunnel under the North Channel
, with one possible site connecting eastern Northern Ireland to Wigtownshire
. The idea has been given technical consideration since the 19th century, but, as of 2006, no major political party has advocated such a link, due to financial constraints.
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
is the smallest of the four countries
Countries of the United Kingdom
Countries of the United Kingdom is a term used to describe England, Northern Ireland, Scotland and Wales. These four countries together form the sovereign state of the United Kingdom of Great Britain and Northern Ireland, which is also described as a country. The alternative terms, constituent...
in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. Northern Ireland has traditionally had an industrial economy, most notably in 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...
, rope manufacture
Rope
A rope is a length of fibres, twisted or braided together to improve strength for pulling and connecting. It has tensile strength but is too flexible to provide compressive strength...
and textiles, but most heavy industry
Heavy industry
Heavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...
has since been replaced by services. To this day, Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
still suffers from the results 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...
which occurred between the late 1960s until the mid-1990s.
Output and economic growth
Northern Ireland has the smallest economy of any of the twelve NUTS 1 regionsNUTS:UK
In the NUTS codes of the United Kingdom , the three levels are:-NUTS codes:...
of the United Kingdom, at €37.3bn, or about two-thirds of the size of the next smallest, North East England
North East England
North East England is one of the nine official regions of England. It covers Northumberland, County Durham, Tyne and Wear, and Teesside . The only cities in the region are Durham, Newcastle upon Tyne and Sunderland...
. However, this is partly because Northern Ireland has the smallest population; at €19,603 Northern Ireland has a greater GDP per capita than both North East England and Wales
Wales
Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...
.
Other Comparisons
| *Border Midland & Western Ireland (1.1 million) | **Southern & Eastern Ireland (3 million) | Northern Ireland (1.75 million) |
|---|---|---|
| €25.5 bn GVA | €497,374 bn GVA | €37.3 bn |
| €23,637 GVA per person | €35,725 GVA per person | €19,603 per person |
- The BMW region of the Republic of Ireland(consisting of ConnachtConnachtConnacht , formerly anglicised as Connaught, is one of the Provinces of Ireland situated in the west of Ireland. In Ancient Ireland, it was one of the fifths ruled by a "king of over-kings" . Following the Norman invasion of Ireland, the ancient kingdoms were shired into a number of counties for...
, Counties LaoisCounty LaoisCounty Laois is a county in Ireland. It is part of the Midlands Region and is also located in the province of Leinster. It was formerly known as Queen's County until the establishment of the Irish Free State in 1922. The county's name was formerly spelt as Laoighis and Leix. Laois County Council...
, OffalyCounty OffalyCounty Offaly is a county in Ireland. It is part of the Midlands Region and is also located in the province of Leinster. It is named after the ancient Kingdom of Uí Failghe and was formerly known as King's County until the establishment of the Irish Free State in 1922. Offaly County Council is...
, WestmeathCounty Westmeath-Economy:Westmeath has a strong agricultural economy. Initially, development occurred around the major market centres of Mullingar, Moate, and Kinnegad. Athlone developed due to its military significance, and its strategic location on the main Dublin–Galway route across the River Shannon. Mullingar...
, LongfordCounty LongfordCounty Longford is a county in Ireland. It is part of the Midlands Region and is also located in the province of Leinster. It is named after the town of Longford.Longford County Council is the local authority for the county...
, DonegalCounty DonegalCounty Donegal is a county in Ireland. It is part of the Border Region and is also located in the province of Ulster. It is named after the town of Donegal. Donegal County Council is the local authority for the county...
, MonaghanCounty MonaghanCounty Monaghan is a county in Ireland. It is part of the Border Region and is also located in the province of Ulster. It is named after the town of Monaghan. Monaghan County Council is the local authority for the county...
, CavanCounty CavanCounty Cavan is a county in Ireland. It is part of the Border Region and is also located in the province of Ulster. It is named after the town of Cavan. Cavan County Council is the local authority for the county...
, LouthCounty LouthCounty Louth is a county of Ireland. It is part of the Border Region and is also located in the province of Leinster. It is named after the town of Louth. Louth County Council is the local authority for the county...
) - The S&E region of the Republic of Ireland(consisting of LeinsterLeinsterLeinster is one of the Provinces of Ireland situated in the east of Ireland. It comprises the ancient Kingdoms of Mide, Osraige and Leinster. Following the Norman invasion of Ireland, the historic fifths of Leinster and Mide gradually merged, mainly due to the impact of the Pale, which straddled...
, Counties Dublin, WicklowCounty WicklowCounty Wicklow is a county in Ireland. It is part of the Mid-East Region and is also located in the province of Leinster. It is named after the town of Wicklow, which derives from the Old Norse name Víkingalág or Wykynlo. Wicklow County Council is the local authority for the county...
, MeathCounty MeathCounty Meath is a county in Ireland. It is part of the Mid-East Region and is also located in the province of Leinster. It is named after the ancient Kingdom of Mide . Meath County Council is the local authority for the county...
, KildareCounty KildareCounty Kildare is a county in Ireland. It is part of the Mid-East Region and is also located in the province of Leinster. It is named after the town of Kildare. Kildare County Council is the local authority for the county...
, KilkennyCounty KilkennyCounty Kilkenny is a county in Ireland. It is part of the South-East Region and is also located in the province of Leinster. It is named after the city of Kilkenny. The territory of the county was the core part of the ancient Irish Kingdom of Osraige which in turn was the core of the Diocese of...
, CarlowCounty CarlowCounty Carlow is a county in Ireland. It is part of the South-East Region and is also located in the province of Leinster. It is named after the town of Carlow, which lies on the River Barrow. Carlow County Council is the local authority for the county...
, WexfordCounty WexfordCounty Wexford is a county in Ireland. It is part of the South-East Region and is also located in the province of Leinster. It is named after the town of Wexford. In pre-Norman times it was part of the Kingdom of Uí Cheinnselaig, whose capital was at Ferns. Wexford County Council is the local...
).
Throughout the 1990s, the Northern Irish economy grew faster than did the economy of the rest of the UK, due in part to the Celtic Tiger rapid growth of the economy of the Republic of Ireland and the so-called 'peace dividend'. Growth slowed to the pace of the rest of the UK during the down-turn of the early years of the new millennium, but growth has since rebounded; in 2005, the Northern Irish economy is estimated to have grown by 3.2%, almost twice as fast as the UK as a whole, and future growth is expected to be stronger than that of the rest of the United Kingdom, though lower than that of the Republic. In April 2007 a Halifax survey found Northern Ireland's average house price to one of the highest in the UK, behind London, the South East and the South West. It also found Northern Ireland to have all of the top ten property "hot spots", with the Craigavon
Craigavon
Craigavon is a settlement in north County Armagh, Northern Ireland. It was a planned settlement that was begun in 1965 and named after Northern Ireland's first Prime Minister — James Craig, 1st Viscount Craigavon. It was intended to be a linear city incorporating Lurgan and Portadown, but this plan...
and Newtownards
Newtownards
Newtownards is a large town in County Down, Northern Ireland. It lies at the most northern tip of Strangford Lough, 10 miles east of Belfast, on the Ards Peninsula. Newtownards is the largest town in the Borough of Ards. According to the 2001 Census, it has a population of 27,821 people in...
areas increasing by 55%.
Employment
UnemploymentUnemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
in Northern Ireland has decreased substantially in recent years, and is now roughly at 14.5%, down from a peak of 17.2% in 1986. Youth unemployment and long-term unemployment have fallen most quickly. Working-age economic inactivity is 28%, which is the highest of any UK region.
Northern Ireland's macroeconomy is also characterised by considerably longer actual working hours and lower gender income disparity than in the United Kingdom as a whole.
Investment
During the TroublesThe 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...
, Northern Ireland received little foreign investment.
Since the signing of the Good Friday Agreement, investment in Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
has increased significantly. Most investment has been focused in Greater Belfast
Greater Belfast
Greater Belfast is an area surrounding and including Belfast in Northern Ireland.It includes Belfast and parts of the North Down, Lisburn, Castlereagh and Newtownabbey district council areas. Greater Belfast is the largest urban area in Northern Ireland, and second largest in Ireland...
. Major projects include the £400 million Victoria Square retail development in Belfast 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...
. The city will also see the largest waterfront development in Europe with the Titanic Quarter scheme, costing over £1 billion and taking seven years to complete. The Laganside Corporation
Laganside Corporation
The Laganside Corporation was a non-departmental public body formed by the Laganside Development Order 1989 with the goal of regenerating large sections of land in Belfast, Northern Ireland adjacent to the River Lagan...
has been at the forefront of the redevelopment of the riverfront along the banks of the River Lagan, to date the corporation has overseen the investment of over £800 million in the riverside area. 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...
has also seen substantial investment.
In addition, the Department of Enterprise, Trade and Investment
Department of Enterprise, Trade and Investment
The Department of Enterprise, Trade and Investment is a devolved Northern Ireland government department in the Northern Ireland Executive...
has commissioned MATRIX, the Northern Ireland Science Industry Panel,to advise government on the commercial exploitation of R&D and science and technology in Northern Ireland.
The Matrix Panel aims to grow NIs wealth by encouraging the exploitation of its science and R&D base. The work has shown that there is still a need for greater exploitation of science and technology and a step-change in innovation in the economy and workplaces.
The Panel’s recommendations are the result of a collaborative effort of technology industry leaders and experts in Northern Ireland.
Agriculture
AgricultureAgriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
in Northern Ireland is heavily mechanised, thanks to high labour costs and heavy capital investment, both from private investors and the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
's Common Agricultural Policy
Common Agricultural Policy
The Common Agricultural Policy is a system of European Union agricultural subsidies and programmes. It represents 48% of the EU's budget, €49.8 billion in 2006 ....
. In 2000, agriculture accounted for 2.4% of economic output in Northern Ireland, compared to 1% in the United Kingdom as a whole. As in the rest of the United Kingdom, livestock
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
and dairy
Dairy
A dairy is a business enterprise established for the harvesting of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned...
account for the majority of agricultural output. The main crops
Crop (agriculture)
A crop is a non-animal species or variety that is grown to be harvested as food, livestock fodder, fuel or for any other economic purpose. Major world crops include maize , wheat, rice, soybeans, hay, potatoes and cotton. While the term "crop" most commonly refers to plants, it can also include...
are (in descending order of value) potato
Potato
The potato is a starchy, tuberous crop from the perennial Solanum tuberosum of the Solanaceae family . The word potato may refer to the plant itself as well as the edible tuber. In the region of the Andes, there are some other closely related cultivated potato species...
es, barley
Barley
Barley is a major cereal grain, a member of the grass family. It serves as a major animal fodder, as a base malt for beer and certain distilled beverages, and as a component of various health foods...
, and wheat
Wheat
Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2007 world production of wheat was 607 million tons, making it the third most-produced cereal after maize and rice...
.
Manufacturing
Heavy industryHeavy industry
Heavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...
is concentrated in and around Belfast
Belfast
Belfast 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...
, although other major towns and cities also have heavy manufacturing areas. Machinery and equipment manufacturing, food processing
Food processing
Food processing is the set of methods and techniques used to transform raw ingredients into food or to transform food into other forms for consumption by humans or animals either in the home or by the food processing industry...
, textile
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
and electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...
manufacturing are the leading industries. Other industries such as papermaking
Papermaking
Papermaking is the process of making paper, a substance which is used universally today for writing and packaging.In papermaking a dilute suspension of fibres in water is drained through a screen, so that a mat of randomly interwoven fibres is laid down. Water is removed from this mat of fibres by...
, furniture
Furniture
Furniture is the mass noun for the movable objects intended to support various human activities such as seating and sleeping in beds, to hold objects at a convenient height for work using horizontal surfaces above the ground, or to store things...
manufacturing, aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...
and 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...
are also important, concentrated mostly in the eastern parts of Northern Ireland. Of these different industries, one of the most notable is that of Northern Ireland's fine linens, which is considered as one of the most well-known around 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...
.
Although its share of economic output has declined, manufacturing output in Northern Ireland has remained almost unchanged over the past five years, after a period of steep manufacturing growth between 1998 and 2001. However, this overall picture of health hides a dramatic shift in manufacturing priorities, with the decline of traditional industries, such as textiles and shipbuilding, at the expense of high tech
High tech
High tech is technology that is at the cutting edge: the most advanced technology currently available. It is often used in reference to micro-electronics, rather than other technologies. The adjective form is hyphenated: high-tech or high-technology...
and capital-intensive
Capital intensity
Capital intensity is the term in economics for the amount of fixed or real capital present in relation to other factors of production, especially labor...
industries. In 2005, chemicals and engineering (both of which belong firmly to the latter group) were the only two manufacturing sub-sectors to record growth, whilst output of textiles fell by 18%.
Engineering is the largest manufacturing sub-sector in Northern Ireland, particularly in the fields of aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...
and heavy machinery. Bombardier Aerospace
Bombardier Aerospace
Bombardier Aerospace is a division of Bombardier Inc. and is the third-largest airplane manufacturer in the world. It is headquartered in Dorval, Quebec, Canada.- History :...
is the province's largest industrial employer, with 5,400 workers at five sites in the Greater Belfast
Greater Belfast
Greater Belfast is an area surrounding and including Belfast in Northern Ireland.It includes Belfast and parts of the North Down, Lisburn, Castlereagh and Newtownabbey district council areas. Greater Belfast is the largest urban area in Northern Ireland, and second largest in Ireland...
area. Other major engineering employers in Northern Ireland include Bombardier Aerospace
Bombardier Aerospace
Bombardier Aerospace is a division of Bombardier Inc. and is the third-largest airplane manufacturer in the world. It is headquartered in Dorval, Quebec, Canada.- History :...
, Caterpillar
Caterpillar Inc.
Caterpillar Inc. , also known as "CAT", designs, manufactures, markets and sells machinery and engines and sells financial products and insurance to customers via a worldwide dealer network. Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas...
, DuPont
DuPont
E. I. du Pont de Nemours and Company , commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Eleuthère Irénée du Pont. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009...
, Emerson Electric
Emerson Electric Company
Emerson Electric Company is a major multinational corporation headquartered in Ferguson, Missouri, United States. This Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.Emerson is one of the largest...
, Nortel
Nortel
Nortel Networks Corporation, formerly known as Northern Telecom Limited and sometimes known simply as Nortel, was a multinational telecommunications equipment manufacturer headquartered in Mississauga, Ontario, Canada...
, Northbrook Technology
Northbrook Technology
Allstate NI is a company based in Belfast, Derry and Strabane in Northern Ireland. The company was previously known as Northbrook Technology. As of May 7, 2008, Northbrook Technology was renamed to Allstate Northern Ireland....
, Seagate
Seagate Technology
Seagate Technology is one of the world's largest manufacturers of hard disk drives. Incorporated in 1978 as Shugart Technology, Seagate is currently incorporated in Dublin, Ireland and has its principal executive offices in Scotts Valley, California, United States.-1970s:On November 1, 1979...
and NACCO. Many of these manufacturers receive British government financial backing, and enjoy close academic and business links with Queen's University Belfast, which ranks as one of the best British universities for all engineering courses.
Belfast's famous shipyard, Harland and Wolff
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....
, which in the early 20th century was the world's biggest shipbuilder
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...
, suffered from intense international competition during the 1970s and 1980s and declined rapidly. During the 1990s the company diversified into civil engineering
Civil engineering
Civil engineering is a professional engineering discipline that deals with the design, construction, and maintenance of the physical and naturally built environment, including works like roads, bridges, canals, dams, and buildings...
and industrial fabrication, manufacturing bridges and oil platforms. The company made an unsuccessful bid to build the Queen Mary 2, which it was hoped would re-stimulate the yard's shipbuilding business. The vast works on Queen's Island were downsized, with much of the land (including the slipway were RMS Titanic was built) sold off for redevelopment in the 2000s as the 'Titanic Quarter'- a new residential, commercial and high-tech industrial district. The modern, smaller yard employs only 800 people. H&W have not built a ship since 2003, but has seen workload increase through being involved in shipbreaking, ship repair and maintenance and conversion work. The company has also been active in the design and construction of offshore power generation equipment- both wind turbines and wave-action turbines.
Services
As with all developed economies, services account for the majority of employment and output. Services account for almost 70% of economic output, and 78% of employees.Tourism
Despite the negative image of Northern Ireland held in many foreign countries, on account of the Troubles, tourism is an important part of the Northern Irish economy. In 2004, tourism revenue rose 7% to £325mPound 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...
, or over 1% of the local economy, on the back of a rise of 4% in total visits to 2.1 m in the year. Tourism is considered likely to become one of the main growth areas of the economy in the near future, with the continuation of the peace process
Northern Ireland peace process
The peace process, when discussing the history of Northern Ireland, is often considered to cover the events leading up to the 1994 Provisional Irish Republican Army ceasefire, the end of most of the violence of the Troubles, the Belfast Agreement, and subsequent political developments.-Towards a...
and the normalisation of the image of Northern Ireland internationally. The most popular tourist attractions include Belfast
Belfast
Belfast 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...
, Armagh
Armagh
Armagh is a large settlement in Northern Ireland, and the county town of County Armagh. It is a site of historical importance for both Celtic paganism and Christianity and is the seat, for both the Roman Catholic Church and the Church of Ireland, of the Archbishop of Armagh...
, the Giant's Causeway
Giant's Causeway
The Giant's Causeway is an area of about 40,000 interlocking basalt columns, the result of an ancient volcanic eruption. It is located in County Antrim on the northeast coast of Northern Ireland, about three miles northeast of the town of Bushmills...
, and Northern Ireland's many castles
Castles in Northern Ireland
The following is a partial list of castles in Northern Ireland:- County Antrim :* Antrim Castle * Ballycastle Castle* Ballygally Castle* Ballylough Castle* Belfast Castle* Carra Castle, ruins* Carrickfergus Castle, Restored Castle...
.
One drawback to the future of tourism in Northern Ireland is a long standing campaign by the Northern Ireland Housing Executive to replace all old country dwellings with new ones. This is done by means of a new building grant given upon agreement to demolish the older building. In the last decade particularly, much of Northern Ireland's ancient buildings have been destroyed. These buildings; mostly stone cottages, would, had they received grants to be rethatched and restored have provided a very large potential bed&breakfast sector for tourists.
Another has been the almost uncontrolled development of the countryside to provide more grazing space. The vast majority of odd, unusual, charming and eccentric landscape features including copses, woods, old stone walls, fieldstones, have been removed with diggers and chainsaws leaving large areas of blandness and little refuge for wildlife.
Much has to be done to convince the people of Northern Ireland of the value of old architecture, natural landscape and wildlife, although this statement sounds more like an opinion than an encyclopaedic fact.
Public sector
As of December 2008 the public sector in Northern Ireland accounted for 30.8% of the total workforce. This is significantly higher than the overall UK figure of 19.5%, and also higher than Scotland, the next nearest region at 24%. Overall, the Northern Ireland figure has fallen. In 1992 the public sector accounted for 37% of the workforce. When measured relative to population, the gap between the Northern Ireland and UK figures reduces to three percentage points.In total, the British government subvention totals £5,000m, or 20% of Northern Ireland's economic output. Many unionists in Northern Ireland argue that a united Ireland
United Ireland
A united Ireland is the term used to refer to the idea of a sovereign state which covers all of the thirty-two traditional counties of Ireland. The island of Ireland includes the territory of two independent sovereign states: the Republic of Ireland, which covers 26 counties of the island, and the...
could not sustain these levels of public sector employment, particularly as only 36% of the economy of the Republic of Ireland
Economy of the Republic of Ireland
The economy of Ireland has transformed in recent years from an agricultural focus to a modern knowledge economy, focusing on services and high-tech industries and dependent on trade, industry and investment. In terms of GDP per capita, Ireland is ranked as one of the wealthiest countries in the...
is made up of government expenditure. Many in favour of a united Ireland argue that it is this dependence on the public sector that dissuades potential investors, causing Northern Ireland's relative poverty.
Currency
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...
. Although the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
, in use in the Republic of Ireland
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,...
, is accepted by retailing chains closer to the border with the Republic of Ireland, Sterling is Northern Ireland's legal tender and the most widely circulated currency.
In addition, four Northern Ireland banks retain the right to print their own sterling-denominated banknotes: Bank of Ireland
Bank of Ireland
The Bank of Ireland is a commercial bank operation in Ireland, which is one of the 'Big Four' in both parts of the island.Historically the premier banking organisation in Ireland, the Bank occupies a unique position in Irish banking history...
, First Trust Bank
First Trust Bank
First Trust Bank, part of the AIB Group, is a commercial bank in Northern Ireland. The bank was created in 1991 when TSB Northern Ireland merged with the AIB Group's other interests. The bank can trace its existence back to 1816 with the founding of the Belfast Savings Bank...
, Northern Bank
Northern Bank
Northern Bank , is a commercial bank in Northern Ireland. It is one of the oldest banks in Ireland having been formed in 1809. Northern Bank is considered one of the leading retail banks in Northern Ireland with 82 branches and four finance centres...
, and Ulster Bank
Ulster Bank
Ulster Bank is a large commercial bank, one of the Big Four in both Northern Ireland and the Republic of Ireland. The Ulster Bank Group is subdivided into two separate legal entities, Ulster Bank Limited and Ulster Bank Ireland Limited...
.
Energy
| Primary energy consumption | ||
|---|---|---|
| Source | ktoe | % |
| Coal | 1,440 | 29.4 |
| Oil & LPG | 1,290 | 26.3 |
| Natural Gas | 1,100 | 22.4 |
| Vehicle fuel | 926 | 18.9 |
| Renewables | 10 | 0.2 |
| Electricity imports | 140 | 2.8 |
| Total | 4,900 | 100 |
Northern Ireland's total primary energy consumption is approximately 4.90 million tonne
Tonne
The tonne, known as the metric ton in the US , often put pleonastically as "metric tonne" to avoid confusion with ton, is a metric system unit of mass equal to 1000 kilograms. The tonne is not an International System of Units unit, but is accepted for use with the SI...
s of oil equivalent. The vast majority of this energy comes from fossil fuels.
Energy policy in the province is maintained by the Department of Enterprise, Trade and Investment
Department of Enterprise, Trade and Investment
The Department of Enterprise, Trade and Investment is a devolved Northern Ireland government department in the Northern Ireland Executive...
.
Electricity
Northern Ireland's electrical gridElectric power transmission
Electric-power transmission is the bulk transfer of electrical energy, from generating power plants to Electrical substations located near demand centers...
is operated by Northern Ireland Electricity
Northern Ireland Electricity
Northern Ireland Electricity Limited is the electricity asset owner of the transmission and distribution infrastructure in Northern Ireland. NIE does not own generate or supply electricity. NIE is a subsidiary of ESB Group....
(NIE) who own and manage the infrastructure which connects over 850,000 customers. Electricity consumption in Northern Ireland was 7,867 GW·h
Watt-hour
The kilowatt hour, or kilowatt-hour, is a unit of energy equal to 1000 watt hours or 3.6 megajoules.For constant power, energy in watt hours is the product of power in watts and time in hours...
in 2002/3. At 4.6 MW·h per person, this is 18% less than that of the rest of the United Kingdom (5.6 MW·h per person). The main power station is located at Ballylumford
Ballylumford power station
Ballylumford power station is a natural gas-fired power station in County Antrim, Northern Ireland. With its main plant generating 600 megawatts of electricity, it is Northern Ireland's largest power station and provides half of the country's power. Overall the station produces 1316MW...
, and is operated by Premier Power
Premier Power
Premier Power Limited is an electricity supply company in Northern Ireland.The company was formed in 1992 following the privatization of electricity supply in Northern Ireland. Previously Northern Ireland Electricity was responsible for the running of the country's power stations and transmission...
. There is also Coolkeeragh power station
Coolkeeragh power station
Coolkeeragh power station is a power station near Derry in Northern Ireland.The station produces 400 megawatts from a gas fired combined cycle power plant, constructed on the site of the old Coolkeeragh power station...
near Derry.
Northern Ireland's electrical grid
Electric power transmission
Electric-power transmission is the bulk transfer of electrical energy, from generating power plants to Electrical substations located near demand centers...
is connected to that of the Republic of Ireland by three cross-border interconnectors. The main interconnector, between Tandragee and Louth has a capacity of 1,200 MW
Watt
The watt is a derived unit of power in the International System of Units , named after the Scottish engineer James Watt . The unit, defined as one joule per second, measures the rate of energy conversion.-Definition:...
. Two back-up interconnectors have a combined capacity of 240 MW. This combined all-island grid is connected to the National Grid on the island of Great Britain
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...
by the 500 MW Moyle interconnector
HVDC Moyle
The HVDC Moyle is the HVDC link between Auchencrosh, South Ayrshire in Scotland and Ballycronan More, County Antrim in Northern Ireland, which went into service in 2001. It is owned and operated by Mutual Energy....
, under the North Channel
North Channel (British Isles)
The North Channel is the strait which separates eastern Northern Ireland from southwestern Scotland...
.
Gas
Northern Ireland has no natural gas resources of its own, and gets its gas for the Belfast area from a 24 inches (609.6 mm) interconnector pipeline along Beaufort's DykeBeaufort's Dyke
Beaufort's Dyke is the sea trench between Northern Ireland and Scotland within the North Channel. The dyke is 50 km long, 3.5 km wide and 200–300 metres deep....
across the Irish Sea to Antrim from Scotland called the Scotland Northern Ireland Pipeline (SNIP), which was built in 1998. The main gas supply company in the Greater Belfast
Greater Belfast
Greater Belfast is an area surrounding and including Belfast in Northern Ireland.It includes Belfast and parts of the North Down, Lisburn, Castlereagh and Newtownabbey district council areas. Greater Belfast is the largest urban area in Northern Ireland, and second largest in Ireland...
area is Phoenix Natural Gas
Phoenix Natural Gas
Phoenix Natural Gas is the largest gas distribution business in Northern Ireland, being the owner and operator of the licence for the distribution network in the Greater Belfast area...
, a former subsidiary of British Gas. It has become separate from British Gas
British Gas plc
British Gas plc was formerly the monopoly gas supplier and is a private sector in the United Kingdom.- History :In the early 1900s the gas market in the United Kingdom was mainly run by county councils and small private firms...
since 2003.
In the other areas of Northern Ireland, specifically towards Derry, gas comes from two interconnector pipelines, one being supplied by the Republic's gas supplier, Bord Gáis
Bord Gáis
Bord Gáis Éireann , normally branded as Bord Gáis, is the main supplier and distributor of pipeline natural gas in the Republic of Ireland. The company has built an extensive network across Ireland. The company supplies gas to domestic and industrial customers on a fully regulated basis...
. The North-West pipeline from Carrickfergus
Carrickfergus
Carrickfergus , known locally and colloquially as "Carrick", is a large town in County Antrim, Northern Ireland. It is located on the north shore of Belfast Lough, from Belfast. The town had a population of 27,201 at the 2001 Census and takes its name from Fergus Mór mac Eirc, the 6th century king...
in County Antrim to Derry opened in November 2004, and the South-North pipeline from Gormanston
Gormanston, County Meath
Gormanston or Gormanstown is a village in County Meath, Ireland. It is near the mouth of the River Delvin and the northern border of County Dublin.-Access:Gormanston is near the M1 Dublin-Belfast road...
(in the Republic) to Antrim was opened in October 2006. The complete South-North pipeline to Dublin opened in November 2007, passing Armagh, Banbridge, Craigavon and Newry. Since December 2005, Bord Gáis has supplied gas to residential customers in this area under the name firmus energy
Firmus Energy
firmus energy is an energy company based in Antrim, Northern Ireland.Bord Gáis has an ambitious plan to develop the gas market in Northern Ireland. A pipeline from Carrickfergus to Derry was completed in October 2004 and now serves Coolkeeragh Power Station. A second pipeline, known as the...
.
Transport
Northern Ireland has well-developed transport infrastructure. Northern Ireland has a total of 24,820 km (15,420 mi) of roads, or 1 km for each 68 people (1 mi for each 109 people), which is considerably more than in the United Kingdom as a whole (1 km per 162 people). There are seven motorways in Northern Ireland, extending radially from Belfast, and connecting that city to AntrimAntrim, County Antrim
Antrim is a town in County Antrim in the northeast of Northern Ireland, on the banks of the Six Mile Water, half a mile north-east of Lough Neagh. It had a population of 20,001 people in the 2001 Census. The town is the administrative centre of Antrim Borough Council...
, Dungannon
Dungannon
Dungannon is a medium-sized town in County Tyrone, Northern Ireland. It is the third-largest town in the county and a population of 11,139 people was recorded in the 2001 Census. In August 2006, Dungannon won Ulster In Bloom's Best Kept Town Award for the fifth time...
, Lisburn
Lisburn
DemographicsLisburn Urban Area is within Belfast Metropolitan Urban Area and is classified as a Large Town by the . On census day there were 71,465 people living in Lisburn...
, Newtownabbey
Newtownabbey
Newtownabbey is a large town north of Belfast in County Antrim, Northern Ireland. Sometimes considered to be a suburb of Belfast, it is separated from the rest of the city by Cavehill and Fortwilliam golf course...
, and Portadown
Portadown
Portadown is a town in County Armagh, Northern Ireland. The town sits on the River Bann in the north of the county, about 23 miles south-west of Belfast...
. The Northern Irish rail network is notable as being both the only part of the United Kingdom's railroads operated by a state-owned company, Northern Ireland Railways
Northern Ireland Railways
NI Railways, also known as Northern Ireland Railways and for a brief period of time, Ulster Transport Railways , is the railway operator in Northern Ireland...
, and the only substantial part that carries no freight traffic.
Northern Ireland is home to three civilian airports: Belfast City, Belfast International
Belfast International Airport
Belfast International Airport is a major airport located northwest of Belfast in Northern Ireland. It was formerly known and is still referred to as Aldergrove Airport, after the village of the same name lying immediately to the west of the airport. Belfast International shares its runways with...
, and City of Derry
City of Derry Airport
City of Derry Airport is an airport located northeast of Derry, Northern Ireland. It is located on the south bank of Lough Foyle, a short distance from the village of Eglinton and from the city centre...
. Major seaports in Northern Ireland include the Port of Belfast
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...
and the Port of Larne
Larne
Larne is a substantial seaport and industrial market town on the east coast of County Antrim, Northern Ireland with a population of 18,228 people in the 2001 Census. As of 2011, there are about 31,000 residents in the greater Larne area. It has been used as a seaport for over 1,000 years, and is...
. The Port of Belfast is one of the chief ports of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, handling 17 million tonnes (16.7 million long ton
Long ton
Long ton is the name for the unit called the "ton" in the avoirdupois or Imperial system of measurements, as used in the United Kingdom and several other Commonwealth countries. It has been mostly replaced by the tonne, and in the United States by the short ton...
s) of goods in 2005, equivalent to two-thirds of Northern Ireland's seaborne trade.
In addition to these existing links, several organisations have proposed a tunnel under the North Channel
North Channel (Great Britain and Ireland)
The North Channel is the strait which separates eastern Northern Ireland from southwestern Scotland...
, with one possible site connecting eastern Northern Ireland to Wigtownshire
Wigtownshire
Wigtownshire or the County of Wigtown is a registration county in the Southern Uplands of south west Scotland. Until 1975, the county was one of the administrative counties used for local government purposes, and is now administered as part of the council area of Dumfries and Galloway...
. The idea has been given technical consideration since the 19th century, but, as of 2006, no major political party has advocated such a link, due to financial constraints.
See also
- Economy of the Republic of IrelandEconomy of the Republic of IrelandThe economy of Ireland has transformed in recent years from an agricultural focus to a modern knowledge economy, focusing on services and high-tech industries and dependent on trade, industry and investment. In terms of GDP per capita, Ireland is ranked as one of the wealthiest countries in the...
- Countries of the United Kingdom by GDP per capita