A report issued by Pricewaterhouse Coopers suggests that Northern Ireland will fare better than the rest of the UK during the recession.

The report forecasts a possible decline of 3% in 2009 whereas mainland UK can expect up to a 4% contraction.  Levels of unemployment in Northern Ireland also remain the lowest of any region in the UK.  This is despite the largest increase in unemployment since 1971 with the jobless total up 14,700 in the last year.

PwC Chief Economist Philip McDonagh predicts that Northern Ireland would “perform less worse rather than better than the rest of the UK, because of our structure – with a large public sector – we are going to suffer less than other regions.”

Although house prices in Northern Ireland have fallen in their worst slump since the 1980′s, the report suggests that the end may be in sight and Mr McDonagh states that there are “some reasons to be cheerful in the midst of all the gloom.  The lower Sterling/Euro exchange rate is good news for our tourist industry as we remain an affordable holiday destination.  The reduction in property prices means that houses are at a more realistic and affordable.

Whilst the report warns that the local economy is likely to shrink further we should take some comfort in knowing that things could be worse and are likely to be worse in other parts of the UK.