Economic gloom is causing jitters around the globe, but Northland business leaders say the region is better placed than most to weather the gathering storm.
The past month has seen international finance houses collapsing and the United States try to arrest the slide by bailing out financial institutions to the tune of $1 trillion.
Yesterday, the New Zealand stock exchange NZX50 index sank to its lowest level in three years.
Brian Roberts, head of economic development agency Enterprise Northland, said he was not as optimistic as he was three months ago but still believed Northland was in a relatively good position.
"Then I would have said the storm was a category 1 to 2 out of 5. Now it's more like a category 3 to 4 storm.
"But the feedback we're getting ... is that we're definitely in a better position than many other areas," Mr Roberts said.
He said the big cities were particularly hard hit by the credit crunch and also most affected by the drop in real estate prices.
Greater business diversity meant Northland now had many more exporters than in previous decades, so could ride out the storm better.
"The issue at the moment is that things are changing so quickly ... A lot of businesses are planning for what we know now, but tomorrow that could change because of things outside their control."
Falling dairy prices were good for consumers and while it would mean a drop in the forecast payout to dairy farmers - a mainstay of the Northland economy - they would still have a decent income.
"The big worry though is that if there could be a world recession and that would effect everybody."
Tourism boss Robyn Bolton, of Destination Northland, said the coming tourist season was expected to be much the same as last year.
At least the same number of cruise ships would visit Northland, with 22 booked so far. Tourism is worth an estimated $660 million a year to Northland.
Northland could also benefit from cash-strapped Kiwis deciding to holiday at home rather than travelling overseas.
"Nobody really knows exactly what's going to happen, but some good weather this summer will definitely help. But we are in a good position to try to get people to come north, especially if more New Zealand travellers decide to spend this summer in their own country."
Northland Chamber of Commerce head Jeff Smith said, despite the gloom elsewhere, Northland businesses were optimistic about the future.
"The big thing about economic development is that there are things outside our control, like the price of oil and the exchange rate. When these things change it affects things on the ground here in Northland," Mr Smith said.
"But from our point of view business confidence is high. That was before the latest economic indicators, but the doom and gloom from overseas hasn't got here yet."
The availability of credit for expansion and investment could become a problem for some businesses, but his advice was to ``hunker down' and ride the storm out.
"Businesses need to really look at their productivity ... If you become more productive now it will stand you in good stead for when the times are good again."
North well placed to ride out financial storm
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