Partner Article

Exports will drive North East out of recession

The health of the North East economy is slowly on the mend with exporters leading the charge to recovery, according to new data.

The North East Chamber of Commerce’s latest quarterly economic survey, the North East Business Barometer, shows the region is still in the grip of the recession but the rate of decline has slowed.

While domestic orders for the coming three months remain sluggish for many companies, exporters are reporting that demand for goods and services are up for the next quarter.

NECC has warned that the signs of recovery are fragile and is urging politicians and the Bank of England to continue to support the business community during the current difficulties.

Martyn Pellew, NECC president, said: “Be under no illusion, the economic climate is still gloomy. However, we are sensing growing positivity among NECC members that better times are ahead. We cannot afford to break that brittle confidence as we anticipate that when the recovery comes it will be sluggish, particularly the domestic market.

“NECC has been adamant for some time now that the fastest route for the North East to get out of recession will be via trade abroad. We are one of the only net exporting regions in the UK and this is a tremendous asset. The figures published today highlight that order books for the coming three months are much stronger for those companies trading on the global stage than they are for firms relying solely on domestic customers.”

The main issues concerning businesses in the near future are taxation and red tape. There is an expectation that tax rises will be used to alleviate the large public debt, some of which will directly affect businesses such as future increases in National Insurance contributions.

This was posted in Bdaily's Members' News section by Ruth Mitchell .