The report, published by the Department of Trade and Enterprise, suggested NI businesses trading in US and European markets are feeling the impact of the global economic slowdown.
Minister Arlene Foster said: "This is clearly a very challenging period for businesses in Northern Ireland, particularly as the impact of the global economic slowdown takes effect.
"At a time when firms are already suffering from the fall-out of the 'credit crunch', rising oil and energy prices are particularly unwelcome.
"Moreover, recent reductions in house prices have dampened consumer confidence."
But the minister said she still expects the NI economy to grow in 2008.
-- Advertisement --
"The strength of the labour market, where the number of employee jobs stands at an all time high of 722,120, coupled with increased investment in R&D, will help many local firms retain their competitive position."
The minister hinted at the global effects of the 'credit crunch': "Businesses in key investment markets, such as the US and Europe, are feeling the impact of the slowdown.
"However, recent announcements such as Bombardier Aerospace’s half billion pound investment in Northern Ireland, illustrate the confidence that overseas investors continue to have in our economy.
"The Bombardier project is the largest ever single investment in Northern Ireland by any company, sustaining over 800 jobs and offering significant development opportunities to local companies.
The Minister insisted her Executive colleagues have placed the economy as a top priority in the Programme for Government.
Ms Foster said: "The current economic climate makes this more challenging and even more important. In the face of the slowdown, both public and private sectors need to re-double their efforts to improve our productivity.
"This is the only way we will weather the storm and generate the wealth we need to increase prosperity and tackle poverty and disadvantage."
The Quarterly Economic Review contains the latest statistics for the global, UK, RoI and NI economies and draws on a number of independent commentaries to provide a concise summary of the current economic climate.
(PR/JM)
