Danske Bank Lowers Economic Growth Forecast

Danske Bank has announced that it has lowered its forecast for the growth of the Northern Ireland economy in 2022.

The bank has said that it expects the pace of economic growth to have slowed in the final quarter of 2021, in part due to the impact of the Omicron coronavirus variant on consumer-focused sectors.

In its latest Northern Ireland Quarterly Sectoral Forecasts report, the Bank estimates that the Northern Ireland economy grew by 6.2% in 2021, and is now forecasting growth of around 4.0% in 2022, down from its previous forecast of 4.7% for the year.

Danske Bank Chief Economist, Conor Lambe, said: "The Northern Ireland economy expanded again in the third quarter of 2021 but the pace of growth slowed. Growth is also expected to have slowed in the fourth quarter as supply side issues continued and the emergence of the new Omicron coronavirus variant likely stifled activity in the consumer-focused sectors.

"The new coronavirus variant and the rise in positive Covid-19 case numbers have increased the likelihood of consumers behaving more cautiously at the beginning of 2022 and more people having to self-isolate is also likely to weigh on activity levels. In addition to this, high inflation and supply chain disruption are continuing to pose challenges for consumers and businesses."