Underlying problems in the Northern Ireland economy will have to be addressed as British government spending on the public sector in the North slows down, a report claimed today.

Northern Ireland’s economy is showing signs of recovery after two difficult years, but forecast growth will be too slow to close the prosperity gap with the rest of the UK, according to a major economic review published today.

A big jump in the poaching of key professionals by competitors coupled with a surge in demand for computer specialists and engineers is driving up salaries in Northern Ireland’s industries, according to a report published today.