THE chief economist of the Institute of Directors (IoD) this week warned North-East businesses to be prepared for a period of considerable economic uncertainty.

Graeme Leach visited the region to speak to the North-East IoD and warned that next year could pose considerable risk for businesses.

Speaking to The Northern Echo, he said: "The global economy looks set to slow over the next year. Growth has been slow in Europe but Asia and the USA have been carrying the world along and their economies will slow by 2005. UK businesses need to remain competitive by not comparing themselves against Europe but against the rest of the world.

"They need to bear in mind when planning for the future that there is going to be a slowdown, and not base their decisions on the last year, which has been good."

He said rising house prices would also cost economic growth.