This was a strong performance, although slightly behind the gains achieved last year (£396million, 24.8% growth).
These figures are among the provisional results from the 2006 Northern Ireland Annual Business Inquiry (NIABI) released today.
Income generated, by mainly business based activity, in Northern Ireland increased by 9.6%, (£1,408million) in 2006 to be worth £16billion.
This was higher than the rate of growth recorded last year (7.1%) and also higher than the average annual rate of growth recorded in the period 2001-05 (3.9%).
The NIABI provides the first detailed estimates for 2006 of the level of mainly business based economic activity across some two-thirds of the Northern Ireland economy1.
The results include estimates of the value of income generated by individual businesses and industry sectors after payment for goods and services (Approximate Gross Value Added (GVA)); the total value of sales and work completed (Turnover); and other financial information.
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The largest growth by value was recorded in the Services sector where GVA increased by an estimated £811million (9.9%) in 2006 to £9billion. This was faster than last year’s growth rate (6.5%) and was higher than the annual average growth rate over the period 2001-2005 (5.9%). Within the Services sector the fastest growing sectors in value terms over the year to 2006 were the Wholesale and Retail sector (10.5%) and the Real Estate Renting and Business Activities (13.3%). Each of these sectors displayed above average growth relative to average annual growth rates over the period 2001-05.
The Manufacturing sector continues to play an important role in the Northern Ireland economy, with the level of sales reported (£14.6billion) similar to that for last year. Manufacturing GVA was estimated to be worth £4billion or 25% of total NIABI GVA in 2006. GVA in the sector was up (5.9% or £222million) compared to the previous year.
The Manufacture of Electrical and Optical Equipment was estimated to have increased by £166million over the year to 2006. Another large increase in the Manufacturing sector was reported in the Manufacture of Machinery and Equipment with an estimated increase of £97million over the year.
In contrast, one of the largest decreases in the Manufacturing sector occurred in the Manufacture of Rubber and Plastic Products where GVA decreased by £69million over the year.
Welcoming the publication of the report, Economy Minister, Nigel Dodds, said: "The above average performance by the business sector is encouraging news and shows we are beginning to realise the potential of the local economy. This is a good starting point for the accelerated growth needed in Northern Ireland’s private sector."
The minister said now focus must be put on strengthening the degree to which business are embedded in the local economy and can benefit from the opportunities presented by international investment.
(GK)
