Regional inequalities around investment, productivity and earnings “remain stubbornly persistent and in some cases are widening” in the north, according to economists.
And without a decisive shift toward long-term, locally led investment strategies, economic disparity will continue to undermine the region’s broader prosperity and social cohesion.
A report by the Ulster University Economic Policy Centre (EPC), entitled ‘Delivering Balanced Regional Economic Growth in Northern Ireland’, finds that while headline gaps in employment and skills indicators have improved in recent years, core disparities in productivity, wages, and job quality endure.
Regional imbalances still persist in Northern Ireland, according to economists at Ulster University (maesarin – stock.adobe.com)
The study examines historical and current policy responses to regional imbalance, offering a sweeping analysis of the economic performance of all 11 council areas across the north.
And its lead author Dr Eoin Magennis, principal economist at the EPC, insists there should be “bold place-based policies” to deliver better balance.
He said: “While we’ve seen pockets of progress, the economic gap between different parts of Northern Ireland is wide – and in some cases, widening.
“One-size-fits-all solutions haven’t worked. Place-based policy – designed with and for local communities – is the way forward.”
Among the report’s key findings are:
- Belfast remains the leading region in terms of gross value added (GVA) per capita and business births, but many of its economic gains are shared with commuter belt areas.
- Productivity gaps persist, with Belfast and Mid Ulster outperforming, while areas such as Derry City & Strabane and North Down & Ards lag behind.
- Employment rates have improved across all council areas, particularly in Mid Ulster and Newry, Mourne & Down, but economic inactivity remains
- Skills and industry mix continue to drive local employment trends, emphasising the need for targeted support in lagging regions.
- Real wage growth has been uneven, with a risk of renewed divergence in income across the region.
The data shows that while employment gaps between council areas have narrowed, disparities in productivity and workplace earnings have persisted or worsened.
The report also highlights a mismatch between job opportunities and local skill levels in some regions.
The report (available to download at ulster.ac.uk/epc) lists these six policy priorities to foster balanced regional growth:
- Investment in regional infrastructure and connectivity, particularly in underdeveloped and rural areas.
- Expansion of education, skills, and innovation hubs outside major cities.
- Creation of place-based business development clusters, tailored to each region’s strengths.
- Empowerment of local governance structures with adequate resources to drive economic development supported by coherent central policies.
- Cross-border cooperation to leverage opportunities with the Republic of Ireland and the rest of the UK.
- Monitoring, reporting, evaluation and adaptability to ensure accountability and continuous improvement based on clear regional performance metrics.
Dr Eoin Magennis, principal economist at the Ulster University EPC
Dr Magennis added: “Good regional policy is smart economics. Unlocking the potential of all our places is not just possible, it’s essential. To both efficiency and growth.”
Last October Stormont’s then-economy minister Conor Murphy launched new economic strategy to tackle regional imbalance in the north which included setting aside a £45 million fund for councils to action.