Northern Ireland has just experienced the best decade of growth since the 1940, but if we are to create jobs for our growing workforce, we need to do even better than that

Stephen Kingon PwC

The province's construction, retailers, business and financial services providers were reporting continued growth, PwC said.

However, that growth had been slower than at the beginning of 2001.

But despite trading difficulties in some sectors and underlying economic weaknesses, growth would be assured unless there was a sudden downturn in global economic performance, PwC predicted.

PwC managing partner, Stephen Kingon said the economy was "holding up relatively well," but there was no room for complacency.

Public sector spending

"Northern Ireland remains insulated from the worst of global economic shocks because our relatively larger public sector acts as a buffer," Mr Kingon said.

"However, in key areas like GDP per head, workforce participation, new business formation and long-term unemployment, Northern Ireland remains at or near the bottom of the UK regional league table.

"Addressing those structural weaknesses in the economy must be a priority.

"Just to match the UK average level of GDP per head would mean doubling the output of both Northern Ireland's manufacturing and business services sectors. That is the magnitude of the task facing the local economy."

Mr Kingon added that Northern Ireland's business sector and the new economic development agency Invest Northern Ireland - being created to replaced the small business funder LEDU and the Industrial Development Board - faced a difficult year.

"Growth in 2002 will be difficult, with nearly half Northern Ireland manufacturing exports destined for the UK and half of UK exports going in turn, to euroland, where growth is very depressed.

"Invest Northern Ireland faces a major task in stimulating growth, especially in the indigenous business sector.

"Northern Ireland has just experienced the best decade of growth since the 1940, but if we are to create jobs for our growing workforce, we need to do even better than that.

"Between now and 2010 that is the challenge facing us all."

The PwC report also forecast that the Irish economy would recover strongly in 2003 to become the world's third fastest-growing economy, after China and South Korea.

Ireland's GDP growth - over 10% in 2000- should top 5%, with inflation falling from last year's high of nearly 5% to less than 2.7% in 2003, PwC predicted.