of the world.

And despite the fact they will be better prepared for any future slump all businesses are hoping for a boom before there is more gloom.

Two weeks ago Finance Minister the Hon. David Saul announced in the House of Assembly that the economy was on the road to recovery.

And according to president of the retail division of the Chamber of Commerce, Mr. Bobby Rego, every business in Bermuda has suffered in some way from the recession that has shaken the world economy throughout the 90s.

Owner of Knick Knack, Mr. Rego said: "There is absolutely no doubt in my mind that every business in Bermuda took a whipping over the last three years, in respect of sales.

"I think business operators on the whole have learned the importance of better management, better utilisation of staff and creating better productivity in relation to their staff.

"I believe the business community is now better equipped coming out the recession. It is a lot leaner and meaner than before.'' He said that businesses got into a "groove'' when business was up and were not prepared for the slump.

At Archie Brown & Son, Mr. Warren Brown Jnr. said: "What we have learned is that the business cycle has a long loop.

"The whole way of retailing is shifting and we have to be on our toes to be competitive.'' Mr. Brown stressed that competition was less a case of battling against other Bermudian businesses. He said competition was now stronger from the United States and Europe.

He said: "Ninety percent of our visitors are from the United States we must be able to sell to these. Our competition is the eastern seaboard of the United States.'' Mr. Brown pointed out that Bermuda still has high operating costs and asked Government to look at ways cutting some of the taxation in the retail sector.

Concerning businessmen's readiness to face future recessions, Mr. Brown said: "People would like to have a few good years before we have another bad year.

"However they are a lot more cautious than they were. The downturn that happened has not merely reversed although the level of buying has started to increase.

"The surge we had in the 80s is not going to come back. Things do not really pick up at the leading edge of the recovery, they get a lot better at the end of the recovery.'' Although many people are buying cars, homes and refrigerators, Mr. Brown said, the retail sector would be the last to feel any great recovery but, he warned: "People are being more selective.'' On December 11, Dr. Saul warned that business must be prepared for the implications of the base closures which will mean far-reaching problems for the economy, but he stressed improvements in tourism, international business and spending in the retail sector.

Lessons from recession He said: "The financial implications are severe. However, if the current economic recovery is sustained, and we are creative in facing these challenges, Bermuda should be well placed to meet the financial problems involved.'' Dr. Saul said there was clear evidence that the economy has emerged from the depths of the recession and that a recovery is taking place.

He added: "However, as I said on June 11, a recession is not like a light switch -- it cannot be turned off in an instant.

"Even when many of the leading indicators suggest that the recession is behind us, the financial implications of that downturn will remain with us for some time to come.''