NEEF: North can survive economic downturn

Dec 5 2008 By Andrew Mernin

THE North East is well positioned to survive the worst of the economic downturn, according to two political heavyweights who spoke at today’s North East Economic Forum.
 
Transport issues, the economy and energy efficiency dominated the morning session at the conference, which attracted business and political leaders to the region from across the country.
 
Speaking through a live video link-up, Business secretary Lord Mandelson said the rapid transformation of the region’s economic make-up in years has put it in a strong position to battle through the worst of the downturn.
 
He said: "The difference between the North East now and how it was in the 1980s is that the economy has been transformed. It's much stronger than how it was in recessions of the past.
 
“Traditional industries have given way to a knowledge-based economy and the region is leading the way in healthcare, life-sciences and renewable energy.
 
Liberal Democrat shadow chancellor Vincent Cable said the fact the region had not had such an extreme housing bubble as some other parts of the country, meant it would not suffer as severely.
 
He also said the region is in a better position than the South East as it’s economy is not as heavily reliant on the financial sector.
 
He said: "The North East is partially insulated from the massive shock which is going to hit the rest of the country and mainly the South East.
 
For more on the North East Economic Forum see tomorrow’s Journal.