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Signs of global upturn bring hope to the region

A senior banker in the region yesterday said the global economy’s slow return to health gives cause for cautious optimism here in the North East.

Andrew Miller, Newcastle-based director at Barclays Wealth, said the US economy was ahead of the UK and was finally experiencing jobs growth and that emerging markets, particularly China, were outperforming the rest of the world.

However, Mr Miller also warned Europe was a split economy with powerhouses such as Germany on the up while Greece was mired in financial chaos and some economically-weaker EU countries had turmoil bubbling under the surface.

Speaking at the North East Chamber of Commerce’s breakfast event to analyse last week’s business barometer results held in Gateshead, Mr Miller emphasised that business growth was the key to a sustained recovery and that exports were the route to success.

He said: “If the global recovery gets choked it will have definite ramifications for the North East.”

The frank assessment from such a senior figure in the business community demonstrates the importance of the Go Global campaign which shines a spotlight on North East exporters competing successfully on the world stage.

Closer to home, the North East also has a job on its hands to manage the transition from its former heavy industrial past to new leaner, low carbon industries of the future, according to Katie Schmuecker, senior research fellow at the think tank, ippr north.

Ms Schmuecker said that low carbon was a definite opportunity for the region but a clear strategy was needed to ensure it was a success: “An active industrial policy that supports the transition to a low carbon economy is important. The strategy should also support the return to economic growth we need in the short-term.”

Bill McGawley, NECC Tyne & Wear committee chairman, had earlier spelled out the resilience of the North East economy in riding out the downturn. He said; “It is tough but I think we are in better shape to deal with this recession than we were the last one.”

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