Northern Ireland has emerged from recession, according to a new report by Northern Bank.
However the survey points out that, while Northern Ireland has technically moved out of recession, economic activity levels are still weak.
According to the report, one of the contributory factors to the North’s economic recovery has been the phenomenon of cross border shopping.
A favourable exchange rate and lower prices have seen a surge of shoppers head north from the Republic.
Last Friday a survey by the Central Statistics Office estimated that around €435m had been spent by people from the Republic travelling north for shopping trips.
An economist for Northern Bank also cited monetary and fiscal intervention, improved consumer confidence and the seasonal impact on household demand for the North’s move out of recession.
However, with growth next year expected to be a modest 1.2%, Northern Bank is cautioning against over optimism and warned of the risk of a slight dip in activity in the first three months of next year.
According to the bank, the public sector has been propping the North’s economy up. For long-term recovery it concluded that a strong export-orientated private sector was crucial.
