Northern Ireland Economy Under Pressure: Brexit Friction, Budget Crises, and Global Policy Headwinds

On this week's episode with Jim Fitzpatrick and Richard Ramsey they explore how one key private sector survey suggests Northern Ireland's economy is struggling, marked by a sixth straight month of declining business activity and escalating input costs, particularly in construction, outpacing other UK regions. Despite some resilience among cross-border firms, the absence for more than a decade of a multi-year budget from Stormont is fostering short-termism and hindering strategic planning. The commitment to UK public sector pay parity exacerbates financial woes, highlighting Northern Ireland's "cake and eat it" approach of demanding high spending with low taxes and a refusal to countenance measures such as water charges.

Brexit frictions - which in Northern Ireland mean things like potential shortages of GB-sourced, non-EU-compliant cars and tumble dryers - are spurring wider UK discussion about rejoining the EU customs union or single market. Meanwhile, the independence of the US Federal Reserve faces political scrutiny, and Ireland's economic model is under pressure due to its low spending on defence, raising concerns about its critical infrastructure vulnerability and reliance on US investment in this new world of disorder.

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