Northern Ireland's economy is struggling to find momentum while the Republic is benefiting from foreign-owned businesses, according to a new report.

The Nevin Economic Research Institute said a deep gap exists between the strong performance of foreign firms operating in the Republic and its domestic economy. The report said Northern Ireland lags in both areas by a considerable margin in output, productivity and investment.

"We note regional disparities in performance and the presence of three effective economies on the island: a split economy in the Republic made up of an apparently world-beating, foreign-owned sector and a more modestly performing domestic sector alongside a laggard Northern Ireland," it said.

"Weaknesses in the domestic sector of the Republic and general performance in Northern Ireland raise questions about current policy aimed at boosting productivity on both sides of the border."

NERI warned that any effort by Northern Ireland to copy the policies of the Republic to draw in more investment were likely "futile" in the absence of any "real" cross-border initiatives and coordination.

Belfast Telegraph