NI's economic output rises, but businesses warn of rising costs
Northern Ireland's economic output, which is broadly equivalent to UK GDP, rose by 2.3% in the year to June.
**NI's economic output rises, but businesses warn of rising costs**
Northern Ireland's economic output increased by 2.3% in the year to June, while businesses are warning that higher costs could create pressure ahead.
Official figures show that economic activity in Northern Ireland in the second quarter of this year grew more quickly than in the UK and the Republic of Ireland.
Northern Ireland's economic output, which is broadly equivalent to UK GDP, was up 2.3% over the year to June.
When comparing economic activity in NI and the UK, NI recorded stronger growth over the year.
Ireland's GDP rose by 10.2% in the latest quarter, but its "Modified Domestic Demand" (MDD), which strips out the distorting effects of globalisation, fell by 0.8% over the quarter.
That compares with quarterly growth of 1% in Northern Ireland.
The rise was led by growth in the production sector, which includes manufacturing.
Greg Bradley, founder of BLK BOX, a company that makes gym equipment in Newtownabbey, said the business has secured contracts with high-profile customers around the world, from sports teams such as Manchester United to chains like PureGym.
Bradley said Covid had made people realise the importance of their health and that "a lot of young people are into going to the gym".
"We have won high profile contracts and expanding internationally across France, Spain, Germany and other countries," he told BBC News NI.
"When I started the business 14 years ago I remember someone telling me I would never sell outside of the island of Ireland and I remember thinking, 'I'm going to prove you wrong'. Thankfully, we have been able to do that," he added.
The company now operates internationally across the EU and in markets including the US, Sri Lanka, Maldives, India and Australia, and has increased its workforce to 180 staff.
He also said the Windsor Framework had been beneficial compared with English competitors.
"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.
"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."
Daniel Duckett said rising petrol prices in particular will affect the cost of goods.
Output in the services sector, the largest part of the Northern Ireland economy, also rose over the past 12 months.
Although the figures indicate the Northern Ireland economy finished the first half of this year in a strong position, there are serious concerns that rising energy and food costs could place businesses under significant strain in the months ahead.
Pastry chef Daniel Duckett closed his east Belfast patisserie in the past year, but has now reopened in partnership with Knott's bakery chain in Forestside shopping centre.
Duckett said Knott's has the buying power for ingredients, so "they can control costs a little bit better than we would have been able to".
"They have been able to absorb a lot more of the costs that we would have been paying before," he added.
Duckett said rising petrol prices in particular will affect the cost of goods.
He added: "We have to think, how much do we deliver to the shops? Because that will also affect our petrol prices that fill up vans that travel across Northern Ireland."
"I think a lot of people don't realise that the weather and global warming affect a lot of the products we bring in - tropical fruits, vanilla, cocoa, sugar cane."
"Those are things that are definitely affected by storms and El Niño. I would try to brace myself for that as well," he added.
Mr Duckett added: "For the second half of the year we will have to be vigilant about where those products that have to travel far come from, as petrol prices will have to factor in to that."