Esmond Birnie, chief economist with Price Waterhouse Coopers in Belfast, has said that Northern Ireland faces “considerable economic and fiscal challenges, as it attempts to re-grow the economy”.

Dr Birnie was responding to the news that, according to the Northern Ireland Composite Economic Index, the economy grew by around 1.4% in 2015 (well behind the rest of the UK, where the average growth was 2.3% over the year).

The Index (produced by NISRA) showed that Northern Ireland’s private sector grew by 2.3% in 2015, but this was offset by a decline of 1.3% in public-sector output.

“Even accounting for positive growth in 2015, local economic output has fallen significantly behind the UK average,” said Dr Birnie. “By the end of 2015, the total output of the Northern Ireland economy was still 7.8% lower than its peak value in mid-2007, just before the onset of the banking crisis and the 2008-9 recession.

“In contrast, UK GDP had recovered to 7% above its pre-recession peak by the end of 2015. In other words, not only is recovery in the Northern Ireland economy relatively slow but it is still both incomplete and mixed. Output remains well behind pre-recession levels, and the most recent figures show an increase in the jobless total.

“Given that scenario, commitments to increase spending face a challenging environment of continued austerity and very slow economic growth. Hard choices around cuts, increasing local taxation, leveraging public-sector assets and reforming government seem unavoidable.”