Northern Ireland entered a technical recession in the summer of 2022, official NISRA figures suggest
NI Statistics and Research Agency figures suggest output fell by 0.3% in the second quarter of 2022 and a further 0.3% in the third quarter.This was compared to the previous quarter.
Although there have now been two quarters of contraction, economic output was still 0.5% higher compared to the third quarter of 2021 and 4.1% above the pre-pandemic level in the autumn of 2019. Northern Ireland was last in a technical recession at the start of 2020, due to the extraordinary impact of the pandemic, but quickly returned to growth.Most economists expect this downturn to be longer lasting as high energy prices and other inflationary pressures reduce consumer spending.Services, which is the largest sector of the economy, drove the economy recovery after the pandemic but it faltered in the third quarter with output remaining flat.
Both the production sector, which is mainly manufacturing, and the public sector showed marginal quarterly growth.
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