Northern Ireland Economic Output Rises 2.3% in Year to June

Northern Ireland's economic output rose 2.3% in the year to June, outpacing growth in both the United Kingdom and the Republic of Ireland, according to figures from the Northern Ireland Statistics and Research Agency (NISRA) cited by BBC News NI. Output rose 1% in the second quarter alone, compared with 0.4% growth in UK GDP over the same period and 1.2% annual UK growth.

The result was driven by an increase in the production sector, which includes manufacturing, according to NISRA. Output in services, the largest part of the Northern Ireland economy, also rose over the past 12 months.

How does Northern Ireland's growth compare with Ireland's?

Ireland's GDP grew 10.2% in the second quarter, a figure inflated by multinational accounting effects, BBC News NI reported. Ireland's Modified Domestic Demand, a measure that strips out those distortions, actually fell 0.8% over the quarter — a contrast NISRA's figures highlight when placed against Northern Ireland's steadier 1% quarterly gain.

What is driving the export growth behind the numbers?

BLK BOX, a Newtownabbey-based gym equipment manufacturer, is one company NISRA's figures point to as an export driver. Founder Greg Bradley started the business 14 years ago after being told he would never sell outside the island of Ireland.

"I remember thinking, 'I'm going to prove you wrong,'" Bradley told BBC News NI. "Thankfully, we have been able to do that."

The company now supplies clients including Manchester United and the PureGym chain, and has grown its workforce to 180 staff. It ships equipment across the European Union and to markets including the United States, Sri Lanka, the Maldives, India and Australia.

How does the Windsor Framework factor into shipping across Europe?

Bradley said the Windsor Framework, which governs Northern Ireland's post-Brexit trading arrangements, has given his company an edge over English competitors selling into the EU. BLK BOX has won contracts with a large French gym chain and the Stade Français rugby team, he said.

"We've been able to win a contract with a large French gym chain, Stade Français rugby team, so it's actually worked out good for us and we are really doubling down on that," Bradley said. He added that customer hesitation over tariffs is often resolved once the shipping arrangement is explained: "There's still a bit of an education process with it, not everyone knows that we can ship frictionlessly across Europe, they are a bit scared of tariffs but once you explain it, everyone is really interested."

Bradley also pointed to consumer behavior shifts as a tailwind for the business, saying the Covid pandemic made people realize the importance of their health and that "a lot of young people are into going to the gym."

What costs are squeezing other Northern Ireland businesses?

The growth figures arrive alongside warnings from other business owners about rising energy and food costs. Daniel Duckett, a pastry chef who closed his east Belfast patisserie in the past year, has reopened in partnership with the Knott's bakery chain at Forestside shopping centre.

Duckett told BBC News NI that Knott's buying power for ingredients gives the partnership more control over costs than he had operating independently. "They have been able to absorb a lot more of the costs that we would have been paying before," he said. Rising petrol prices, he added, will particularly affect the cost of goods going forward.

What should businesses in Northern Ireland watch for next?

NISRA's second-quarter figures show an economy that outperformed both the UK and Ireland's domestic demand measure over the past year, with manufacturing exporters like BLK BOX cited as part of that gain. But the same report carries warnings from operators like Duckett that energy and food costs could pressure margins in the months ahead, even as headline growth figures hold up. The tension between strong output data and rising input costs is likely to shape how Northern Ireland businesses plan through the rest of the year.