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Brazil boost for “patchy” recovery in NI

Posted on 19 Sep 2014 and read 2512 times
Brazil boost for “patchy” recovery in NIAccording to the latest report from Price Waterhouse Coopers, manufacturing export sales to Brazil are providing a “significant” boost to Northern Ireland’s “patchy” economic recovery.

The report shows that, while growth is continuing at a slow rate, export sales to Brazil were worth about £27.7 million in the 2012-2013 financial year (the total value of manufacturing exports to Latin America was £71 million).

Among the companies strengthening their trade links with Brazil is Marlborough Engineering, which is making parts to test the wings and spars for the new KC-390 transport aircraft (pictured) being developed by Embraer. Others include Coleraine-based Armstrong Medical, Anaconda Equipment and Moy Park, which is a subsidiary of the Brazilian company Marfrig.

Esmond Birnie, PWC’s chief economist in Northern Ireland, said: “Some of the high-level indicators like employment are camouflaging other areas where evidence of sustained recovery is less convincing.

"Wages are still lagging behind inflation, productivity is broadly static and around a dozen private-sector companies account for the bulk of manufacturing exports.

“While the falling jobless total is welcome, it needs to be accompanied by productivity gains, export growth and increased investment from both private and public sectors — and unfortunately that's not the case.

"There is certainly clear evidence of recovery, but that is more about slowly catching up on where we were in 2007 than demonstrating real growth of the kind being achieved by other regions.”