The Mid-West business region is set for serious challenges not felt here in more than a decade, according to the Regional President of IBEC, John Liddy. Commenting on the outlook for the region for 2008, IBEC Regional President John Liddy stated that even though the Irish economy had flourished over the last decade, this coming year is likely to be a very difficult year for the region.

"This coming year is likely to be the most challenging for business since the early 1990s. The general economic downturn in the US market, the weak dollar, higher oil costs and an economic slowdown in the world market-provide formidable challenges to be overcome."

"Economic growth could slow significantly and our competitive position will be seriously challenged by adverse exchange rate movements, which now have to reckon with a depreciating sterling rate. The US economy is now moving into recession and the UK economy is slowing sharply. These are two significant trading partners, whose fortunes will directly shape Irish economic prospects."

The Open Skies agreement and the unexpected decision by Aer Lingus to discontinue its London Heathrow service were also both major blows, Mr Liddy said, "but the region responded tremendously well to these challenges," he added.

In 2007, Shannon Airport retained its position as the second-largest airport in the State in terms of passenger throughput and attracted more than twice the combined throughput of all the regional airports.

Despite the challenges faced, the IBEC Regional President expressed great optimism about the future of the mid west region, stating that the region was full of talent, resources and the commitment to be the best performing region.

"The 6% increase in international traffic was achieved despite the commencement of the Open Skies transition in November 2006, which saw the reduction in transatlantic traffic limited to just 4%. According to airport sources, this was more than compensated for by a 10% growth in short-haul traffic," Mr Liddy said.

Despite being confronted with significant job loss figures for the region in 2007, Mr Liddy gave an upbeat assessment of the situation facing business interests in 2008.

"The loss of such a significant number of jobs in the region is concerning, but what the region needs now is a fresh injection of projects and local development agencies have indicated a healthy pipeline for 2008."

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