NORTHERN IRELAND - Economy
Birthplace of world's finest ships
Industrialisation in the region in the nineteenth century began later than in the rest of the UK and was largely concentrated in the urban areas of Belfast and Londonderry. Linen production gave rise to the development of a large textiles industry, while the location of Belfast was conducive to the growth of shipbuilding, and many of the world's finest ships were built there. This led in turn to the development of an engineering industry. In recent years, as in other regions, these traditional industries have experienced considerable difficulties although government efforts to attract new industry to the region have had some successes.
Decline of industry replaced by services
Sectors where the region has traditional strength, such as shipbuilding and textiles, have declined throughout Europe. This trend is also evident in Northern Ireland with the decline of Harland and Wolff and the closure of a number of clothing and textiles companies.
There were approximately 640 foreign owned businesses operating in Northern Ireland in 2002, employing 74,175 employees, or 11 per cent of all employees in Northern Ireland. Thirty per cent of these businesses were in the wholesale and retail sector, with a further 27 per cent in the manufacturing sector. Production is mainly for the British market: 28 per cent of manufacturing output is sold in Northern Ireland and a further 32 per cent is sold in Great Britain, with the remaining 40 per cent exported outside the UK, reflecting the importance of the export market to Northern Ireland manufacturing business. Of the 40 per cent that is exported outside the UK, 26 per cent goes to the Republic of Ireland, followed by 22 per cent to North American markets, and a further 10 per cent to Asian markets. Northern Ireland has had a persistent trade deficit with the Republic of Ireland in recent years (?574 million in 2002).
In April 2002, Invest Northern Ireland was established as a new economic development agency under the Industrial Development Act 2002. Invest NI replaced a number of previous industrial development agencies including the Industrial Development Board (IDB), the Local Enterprise Development Unit (LEDU) and the Industrial Research Technology Unit (IRTU). In it's first year of operation, Invest NI provided financial assistance amounting to £138 million which will result in total investment of approximately £600 million.
There has been an increase in the number of businesses registered for VAT within the region, with the number of VAT registrations increasing by 3 per cent between 1997 and 2002.
Agriculture is relatively more important in the region than in the UK as a whole, accounting for 2.4 per cent of NI Gross Value Added (GVA) compared with 1.0 per cent of UK GVA. Agriculture in Northern Ireland largely revolves around livestock production - cattle, pigs, sheep, and poultry are the main animals raised. Potatoes are the most important crop, followed by barley and wheat. Livestock and livestock products account for 81 per cent of agricultural output with those based on cattle being most important (beef 40 per cent, milk 31 per cent).
There has been a general decline of traditional industries and an increasing importance of the services sector including public services. The services sector contribution to GVA increased from 30 per cent to 40 per cent between 1990 and 2000, where the services sector is defined as constituting the following industries: wholesale and retail trade; hotels and restaurants; transport, storage and communication; real estate, renting and business activities; and other services.
Tourism is a major potential resource, given the attractiveness of the environment. Northern Ireland is an attractive tourist destination for golfers, fishermen, horseback riders, hikers, and campers. The province has many magnificent sandy beaches, although the water is too cold and the weather too unreliable for beach tourism to develop on a large scale. Some important heritage centres have been established, notably in Belfast, Londonderry, and Omagh. These supplement Northern Ireland's world-renowned natural attractions, the most famous of which are the Glens of Antrim in the north east, the Mourne Mountains in the south east, and the Giant's Causeway, a remarkable natural feature on the north coast near the town of Bushmills.
Transport
The NI Railways network currently comprises approximately 210 route miles/342 kilometres. The network incorporates the Belfast-Dublin main line, a line serving Coleraine and Londonderry, with a branch line from Coleraine to Portrush, and suburban routes from Belfast to Portadown, Bangor, and Larne. The road system is well developed with 110 kilometres of motorways in the region in 2003 ? a constant length for around a decade. Belfast International Airport, Belfast City Airport, and City of Derry Airport have established themselves effectively in the British and Irish markets. Belfast and the nearby container port of Larne are major transhipment centres. Ferries connect Belfast and Larne to ports in Scotland and England.
The total tonnage through Northern Ireland ports in 2002 was 21,363 thousand tonnes. This comprised 14,736 thousand tonnes of inward traffic (just over two thirds of total tonnage) and 6,627 thousand tones of outward traffic (just under one third of total tonnage). Total tonnage through Northern Ireland ports has increased by over a fifth between 1992 and 2002.
Comparatively, the volume of freight carried by air is largely inferior to the one carried by sea, 30,700 tonnes of cargo were handled at NI airports in 2002. There were just under 5,640,000 terminal passengers at NI airports in 2002, almost double the number of terminal passengers in 1992.
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