EconomyThe 25-plus years of the Troubles had a profound impact on the economy of Northern Ireland. Historically, the province’s main economic strengths were manufacturing, concentrated on the shipbuilding and aerospace industries in the eastern part of the province, and agriculture, which is prevalent throughout. However, manufacturing has, in common with the rest of the UK, been in long-term decline, although a steady stream of government contracts has enabled it to survive in a reduced form.
Agriculture has performed steadily, underpinned by the policies of the European
Union. The public sector is now the largest single part of the economy and subventions from the British hovernment in one form or another account for the bulk of the province’s income.
The political settlement in the province has presented a number of new opportunities for Northern Ireland’s economy, as well as a number of problems. The most important of these is tourism, which is particularly sensitive to political circumstances in the province and has been largely depressed until recently. However, Northern Ireland and the Republic of Ireland now market themselves jointly overseas under the Tourism Ireland banner and tourism in Northern Ireland has seen growth in recent years.
Similar considerations apply to foreign investment that the province is seeking to attract – especially in view of the success enjoyed by the Irish government during the 1990s. Indeed, the growing economic links between Northern Ireland and the Republic may offer the best prospects for the future development of the province’s economy. Along with the rest of the UK, the Republic of Ireland already accounts for the bulk of Northern Ireland’s external trade.
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