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The NI construction industry has already been badly hit by the recession
There are fears the Northern Ireland construction sector could sink further into decline as a result of the cuts announced in the Spending Review.
It was revealed on Wednesday that the executive's capital spending budget will fall by 40%.
Money set a-side by the executive for large construction projects has been cut more than was predicted.
Ulster Bank chief economist Richard Ramsay said the outlook for government funded building is bleak.
He warned the cuts in public-funded building programmes will be felt across the economy.
"I suppose where it's bad news is going to be in capital investment which is particularly relevant for the construction industry," he said.
"That's all the infrastructure investment, where we're going to see cuts of around 40% in real terms over the next four years.
"That will lead to real damage to the economy and job losses in the construction sector going forward."
The chief executive of the Construction Employers' Federation, John Armstrong echoed the same view.
"I think the hit will be much broader than the construction industry," he said.
"We're going to find more of our children now being educated in dilapidated schools, the housing stock will deteriorate, people will be treated in worn out health care facilities and our infrastructure which is vitally important to economic growth will continue to suffer."
The cutbacks in the executive's capital building programme follow on from an already significant decline in the construction industry as a result of the recession.
The Department of Finance anticipate that a total of £4bn will be taken out of the executive budget over the next four years.
That could mean the loss of up to 20,000 public sector jobs and that will also take money and jobs out of the private sector.
Cuts in welfare payments could take further millions out of the local economy.
£4.2bn per year is spent on welfare payments in NI each year.
The Executive will discuss the full implications of the cuts on Friday.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
The NI construction industry has already been badly hit by the recession There are fears the Northern Ireland construction sector could sink further into decline as a result of the cuts announced in the Spending Review.
It was revealed on Wednesday that the executive's capital spending budget will fall by 40%.
Money set a-side by the executive for large construction projects has been cut more than was predicted.
Ulster Bank chief economist Richard Ramsay said the outlook for government funded building is bleak.
He warned the cuts in public-funded building programmes will be felt across the economy.
"I suppose where it's bad news is going to be in capital investment which is particularly relevant for the construction industry," he said.
"That's all the infrastructure investment, where we're going to see cuts of around 40% in real terms over the next four years.
"That will lead to real damage to the economy and job losses in the construction sector going forward."
The chief executive of the Construction Employers' Federation, John Armstrong echoed the same view.
"I think the hit will be much broader than the construction industry," he said.
"We're going to find more of our children now being educated in dilapidated schools, the housing stock will deteriorate, people will be treated in worn out health care facilities and our infrastructure which is vitally important to economic growth will continue to suffer."
The cutbacks in the executive's capital building programme follow on from an already significant decline in the construction industry as a result of the recession.
The Department of Finance anticipate that a total of £4bn will be taken out of the executive budget over the next four years.
That could mean the loss of up to 20,000 public sector jobs and that will also take money and jobs out of the private sector.
Cuts in welfare payments could take further millions out of the local economy.
£4.2bn per year is spent on welfare payments in NI each year.
The Executive will discuss the full implications of the cuts on Friday.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.