The Northern Irish economy, which was once well-known for shipbuilding and the linen industry, has experienced severe structural headwinds as those industries experienced decline and have now disappeared. While the regional economy remains more concentrated in agriculture, construction and manufacturing relative to the rest of the UK, it is also seeing some new growth in specific areas of services, including the business services sector and the knowledge economy. However Northern Ireland has the worst productivity performance of any region in the UK, trailing 17% behind the UK and 29% behind the Republic of Ireland. This gap is a persistent feature of the local economy.
