Northern Ireland

IV

Economy

In general, the economy of Northern Ireland is based on agriculture and manufacturing and is closely tied to that of the United Kingdom as a whole; almost 50 per cent of manufacturing output is sold to the rest of Britain; 25 per cent is sold locally.

The province was particularly hard hit by the decline of traditional industries like shipbuilding, on which much of its prosperity and many jobs depended. The lack of economic opportunities, particularly for young people, played a role in the “Troubles”, as the sectarian strife came to be known. At the same time, however, the threat of terrorism did not help efforts to attract investment and create new jobs in the 1970s and 1980s.

Considerable public expenditure has been devoted to urban renewal in Belfast and Londonderry (Derry). Various agencies have been established to attract new companies and encourage small business, backed by tax and other incentives. Helped by moves towards a peaceful settlement, several important new investments were announced in the first half of the 1990s.

Public finance comes predominantly from UK taxes and UK government grants in aid; Northern Ireland also receives considerable funding from the European Union.

A

Agriculture, Forestry, and Fishing

Small owner-occupied farms predominate in Northern Ireland. Livestock-farming is important; most of the land is under pasture, but the majority of farms combine crop production with animals. Sheep and cattle are grazed on the moorland areas. Livestock on farms in 2007 numbered approximately 1.64 million cattle, 2 million sheep, 410,000 pigs, and 14.3 million poultry. The leading crops in the country were potatoes, barley, hay, oats, apples, pears, and vegetables.

In common with much of the agricultural sector in the rest of Britain, farming in Northern Ireland has been adversely affected by changes in financial and marketing structures, especially associated with changes in the Common Agricultural Policy of the EU. Problems have been compounded by rural migration, and rural development programmes have been established.

Northern Ireland is sparsely forested; about 5 per cent of the province is wooded. State afforestation programmes have made considerable progress. Sea-fishing is centred on the eastern coast of County Down; Kilkeel, Ardglass, and Portavogie are among the main ports. The most important species caught include whiting, herring, and scallops. Freshwater fisheries operate in Lough Neagh, Lough Erne, and Upper Lough Erne; the species caught include salmon, trout, eel, and pollan.

B

Mining

Mining and quarrying are chiefly of local importance. The main commercial minerals are basalt, sand and gravel, peat, chalk, limestone, and granite. Northern Ireland has lignite (brown coal) deposits that have not yet been fully developed.

C

Manufacturing

Manufacturing is the leading sector of the economy after services. Manufacturing and construction account for about 20 per cent of the employed workforce.

Traditionally, the manufacture of textiles and clothing was one of the leading industries. Since the late 19th century linen has been the most important textile manufactured; cotton cloth and synthetic fabrics rank next in importance. Clothing and footwear manufacture, however, is now far more important than the textile sector. The manufacture of aircraft and guided missiles, mainly by Shorts of Belfast, has been the other major source of employment. The Belfast shipyards were among the largest in the United Kingdom (Harland and Wolff, the builder of the Titanic, was at one time the largest in the world) but they went into decline from the 1970s onwards, along with the rest of the British shipbuilding industry. They continue to operate, but at a fraction of their former scale.

Manufactured goods include textile machinery; clothing; chemicals; electrical and electronic equipment; pharmaceuticals; and food, drink, and tobacco products.

D

Tourism

Tourism is of growing importance. In 2006 around 3.3 million tourists visited the province. Revenue from tourism was £510 million. Tourism promotion is handled by the Northern Ireland Tourist Board, increasingly in cooperation with its counterpart in the Republic of Ireland.