A report on the Irish economy has claimed that Northern Ireland is in the grip of its worst ever downturn.
The study, by accountants Ernst and Young, has revealed the all-island economy could contract by almost 7% this year.
It added that both Northern Ireland and the Republic could still be one to two years away from economic growth.
While there are some signs of recovery, there is a possibility of a "double-dip" recession, according to the report.
It also predicted there will be 35,000 job losses in Northern Ireland during the recession, with the construction and manufacturing sectors the hardest hit.
'Double-dip recession'
"Northern Ireland job losses are at levels more severe than in any other region in the UK - falling back only modestly from highs of 7.5% to 6.75% in 2013," the report claimed.
The forecast highlighted the prospect of public sector cuts as a means to control costs in Northern Ireland and the likelihood of major spending cuts and further tax rises in the Republic.
Neil Gibson, Special Advisor to the Ernst & Young Economic Eye said there were some signs of recovery but there were still tough times ahead.
"Business surveys, corporate announcements, a resilient consumer and economic data all point to a modest improvement in the economic mood North and South of the border," he said.
"This emerging optimism should however, be tempered by the fragility of current conditions and a growing realisation of the scale of problems in public finances in both jurisdictions."
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