The delay in implementing the Belfast agreement is sapping business confidence in Northern Ireland and undermining economic growth, according to a new review of the North's economy. Nonetheless, the prospects for the northern economy are generally positive, with a GDP increase of 1.75 per cent likely this year, and 3 per cent in 2000.

The Review and Outlook for the Northern Ireland Economy, published by AIB's northern subsidiary First Trust, says the operating background of the Northern Ireland economy over the next 18 months is "very positive".