COVID-19 contributed to a 11.4 per cent contraction of Belfast’s economy in 2020, according to PwC.
The latest Demos-PwC Good Growth for Cities Index found the city endured a more severe hit from the pandemic than the UK average (11 per cent), but it forecast Belfast to bounce back and grow by 4.9 per cent in 2021, ahead of the UK average.
The report said a higher than average proportion of Belfast’s economy is in the wholesale and retail trade sector. It predicts the sector will be able to manage the impacts of the pandemic.
But it said continued uncertainties, particularly in the post-EU trading environment means that action is required so that levelling up is a reality, not an unattainable aspiration.
The report also found that local authorities in areas in and around the city of Belfast had the highest proportions of workers placed on the UK furlough scheme (8.8 per cent), ahead of the average UK rate of 8.1 per cent.
The Demos-PwC Good Growth for Cities Index ranks 42 of the UK’s largest cities based on the public’s assessment of 10 key economic wellbeing factors, including jobs, health, income and skills, as well as work-life balance, house affordability, travel-to-work times, income equality, environment and business start-ups.
Kevin MacAllister, regional market leader for PwC Northern Ireland, said: “Like all cities in the UK, Belfast is coping with a hard economic impact from the pandemic, however our Good Growth for Cities Index does show that we will see growth return in 2021. What we have to do collectively is harness that growth and invest in the right way.
“The pandemic has made us more aware of economic and social inequalities and it is therefore necessary to look beyond GDP and focus efforts on tackling the issues that really matter to the public, and our local economies, such as skills, sustainable income and health and wellbeing.
“This year’s Index shows us that Belfast is performing above average for jobs, work-life balance, house price to earnings, owner occupation, transport and income distribution, ensuring our city remains an attractive place to live and work.”
