NECC comments on reviewed growth figures
The NECC is “unsurprised” by the British Chamber of Commerce’s decision to cut economic growth forecasts.
The BCC cut its estimate of economic expansion to just 1.1 percent yesterday, while the Bank of England also cut its forecasts, from 1.75 percent to 1.4 percent.
While many businesses in the North East are doing well, especially in the manufacturing and exports sector, many businesses are still finding it difficult.
Commenting on the figures, Ross Smith, head of policy at the NECC said: “The new figures look to be a realistic, especially as we have witnessed slower growth in the last quarter.
“Overall businesses are growing in terms of sales and orders, but many are still working under capacity, and we’re not seeing much in terns of investment and recruitment across the board.”
Ross also called for the government to ensure they did not undermine growth through “unnecessary tinkering”, with employment laws and energy reforms, which could impede growth.
“A lot of the problems are down to global factors, and the government doesn’t have a silver bullet to solve these problems.
“However, they now need to place a ruthless focus on getting rid of barriers and making regulatory cuts.” He added.