The terror attacks on the United States are likely to cost Northern Ireland 2,000 new jobs in the short term, according to one of the North's leading economic think-tanks. The Northern Ireland Economic Research Centre has revised its employment growth forecasts down from 12,000 new jobs by 2003 to 10,000, as a direct result of the attacks.
In its economic outlook for autumn 2001, the Economic Research Centre warns that current global uncertainties could affect the North's economy in a number of ways. These include direct job losses, such as the 2,000 positions currently under threat at Bombardier Aerospace in Belfast, and further fall-out among firms operating in the aerospace sector.
Economists at the centre believe the most vulnerable sector will be tourism, already badly damaged by the foot-and-mouth crisis.
Last year, visitors to Northern Ireland contributed £265 million sterling (€424 million) to the economy, a fifth of which was from North American tourists and just over half from British visitors. Northern Ireland could stand to lose up to £45 million sterling if Americans decide to stay at home, as they did during the Gulf war, the centre says. Visitor numbers from Britain had already dropped last year by 8 per cent on the 1999 total, and likely indicators suggest that visitor figures for 2001 will show a further fall.
Before the terrorist attacks in America, the Northern Ireland economy had been expected to show job creation figures. However, economists believe that despite the current economic downturn and the impact of the events of September 11th, the North will still enjoy faster growth than the UK.
The report points to the expansion of the services sector as one of the drivers of this growth. "Services now accounts for three-quarters of employees in Northern Ireland," the report states.
British department store chain Debenhams yesterday announced plans to create 250 jobs in a new £25 million investment in Derry. The company is to develop a new store in the city's Foyleside shopping centre.
