NI construction to suffer most from cuts
Published: 18 October, 2010
BELFAST: Northern Ireland's economy is set to suffer more than any other region affected by the Governments spending cuts with the construction in the region bearing the brunt, accounting firm PricewaterhouseCoopers (PWC) said.
The Office for Budget Responsibility, which is due to report next week on the best measures to save money, has already warned that 600 000 public sector jobs could be lost as spending is cut over the next four years.
Northern Ireland, where even the private sector is highly dependent on state spending, is likely to be worst hit by the review by the Office for Budget Responsibility, which is due to report next week, PWC said.
Construction and business services will be the worst hit sectors in the UK economy, PWC added.
The firm calculates that government austerity measures may chop 3.4% from total employment but will not lead to a double-dip recession because job losses will be offset by lower interest rates that encourage private sector growth, said John Hawksworth, chief economist at PWC.