North's economy will avoid worst of downturn, says bank

The Northern economy should avoid the worst of the global financial downturn, according to First Trust Bank.

It says public expenditure, higher in the North than in Britain, should safeguard living standards.

First Trust says talk of a serious recession in the North is "dangerously misleading".

The housing market may be feeble, it says, and rising fuel prices are hitting household and business budgets, but there is no indication of widespread business closures or major redundancies.

It went on to claim that state-funded infrastructure projects are helping boost economic activity, while shops are benefiting from southerners crossing the border to spend the newly-strong euro.

Consumer confidence will remain fragile, but compared to other parts of the world, the North's economy is not in bad shape, a representative added.