Ireland’s northern and western regions face being left behind in a “two-speed economy”, according to a new study by the Northern and Western Regional Assembly (NWRA).

The report says a policy of ‘positive discrimination’ is required to accelerate growth and stem decline in the north, west and border communities of Ireland – namely counties: Donegal; Cavan; Monaghan; Galway; Mayo; Leitrim; Sligo; and Roscommon.

The report, titled ‘A Region in Transition: The Way Forward’, found “startling levels of inequality” in terms of investment across a number of key areas such as health, education, infrastructure and transport.

It has also emerged that the EU has downgraded the northern and western region from being considered as ‘Developed’ and has applied a new designation of ‘In Transition’.

The report’s author, chief economist of the NWRA John Daly, analysed data over a 10-year period and found significant levels of regional under-investment between the years of 2008 to 2018.

The NWRA, which administers major EU funding programmes in eight counties in the region, says the northern and western region has not performed economically as well as other regions in Ireland or relative to the EU norm.

The assembly highlights what it describes as an enormous opportunity to enhance the region’s position as an alternative to overpriced Dublin with career opportunities, affordable housing and a cheaper cost of living.

According to the report, the northern and western region needs an official policy of positive discrimination such as additional investment and it sets out 11 recommendations.

Director of the NWRA David Minton said that if regional gaps in GDP are too large and remain consistent over time, this will inevitably lead to further decline in the northern and western economy.