Accountants in Northern Ireland report 'dampened outlook' about economic future

Just 17% of Chartered Accountants in Northern Ireland believe that prospects for the economy in 2024 are good with over half (59%) seeing the economy as either stagnant or slowing, according to a new report.

The Institute’s latest Financial Confidence Survey compiled feedback from its 5,000 members working in business, practice and across the local public sector who have cited ongoing skills shortages, rising inflation and cutbacks in government spending as contributing to this dampened outlook.

However on a more positive note, an overwhelming majority of members (87%) view the dual-market access afforded to Northern Ireland post-Brexit as its biggest opportunity for growth over the next decade.

But two-thirds of members were also in favour of the Executive pursuing the introduction of a lower rate of corporation tax for Northern Ireland.

And over half saw addressing public sector inefficiency as a top priority in order to make public finances more sustainable.

While two-thirds felt that NI offered a clear investment opportunity when it came to foreign direct investment (FDI), they felt more government supports were needed to bolster the offering.

Commenting, chair of Chartered Accountants Ireland Ulster Society Paul Millar, said: “Despite the economic headwinds facing the economy as a result of inflation, skills shortages and the rising cost of doing business, Northern Ireland ultimately has the opportunity to reverse these trends by fully taking advantage of our unique trading position post-Brexit.

“In this survey, a significant majority of our members rightly point to the dual EU/UK market access afforded to Northern Ireland as our biggest opportunity for growth over the next decade.

"If we can combine this with the introduction of a competitive corporation tax rate and an improved package of business supports to attract FDI, the effect on the economy could be transformative”.

Barry Doyle, president of Chartered Accountants Ireland, added: “Financial confidence, while still muted, is recovering on 2022 levels. There is a notable rise in those that believe the economy is growing, and a sharp drop in those who feel that financial distress is increasing.

"The accountancy profession is fundamental to economic prosperity right across the island of Ireland, with almost 28,000 members supporting businesses on these shores alone. We have played a critical role in helping businesses in every sector to navigate uncertainty over the last few years, and we are ready to engage with business and political partners with renewed vigour to ensure Northern Ireland can avail of this economic opportunity.”

Chartered Accountants Ulster Society is a district society of Chartered Accountants Ireland, Ireland’s oldest and largest professional body of accountants. Founded in 1906, the Ulster Society has over 5,000 members throughout Northern Ireland.