Bermuda's businesses need to work together to lead the Island through the current economic crisis in 2009 and beyond.

That is the hope Finance Minister Paula Cox, who said that the global recession will put pressure on both company and individual incomes, with the tourism industry being flat and the retail and other sectors being impacted as a result.

But Ms Cox reckons there will still be some momentum in the construction industry and the international insurance sector will be well placed to improve in light of increasing premium rates.

However, Shadow Finance Minister Bob Richards believes construction and tourism will struggle, while international business could be set to thrive despite the difficult financial climate.

Ms Cox said Government will focus on education and programmes such as the Economic Empowerment Zone to help close the economic gaps in society by providing both access and opportunity.

"The strategic economic decisions we take collectively over the next several months will be critical to how well we weather the economic downturn," said Ms Cox.

"As Minister of Finance, my wish list also includes the desire to see a true understanding by external regulatory bodies of what it means to operate in a global environment and their recognition that the Bermuda brand represents a market that can compete because it is market-savvy — not based on sharp practice.

"Our competitiveness is not a mirage but represents a pragmatic marriage of quality, efficiency and innovation. Also I would hope that external regulatory standard setters appreciate the clear distinction and benefits of intelligent regulation as opposed to more regulation.

"My hope also is that there is a greater recognition of the economic benefits of education. The owners, employers and employees of the future will need to be well-educated, well-trained and highly-skilled.

"It is important to keep stimulus in the economy and Government will do its part. It is equally important for the business sector to play its part by sustaining employment income at current levels wherever it is feasible to do so.

"Like the rest of the world, Bermuda is facing a tough year ahead but I am confident that we will get through it if we work together."

Shadow Finance Minister Bob Richards said the economic outlook for Bermuda in 2009 was very challenging with the effects of the global downturn, particularly in the US, yet to be fully felt in the Island's economy.

He said he was most worried about the construction industry, which has not really been impacted by the fallout so far, predicting a slowdown in the sector unless there was some real visibility in future major projects in Hamilton due to be completed in the third and fourth quarters of this year.

Mr. Richards also expressed concern over the tourism industry, which he thinks will have a weak year, as indicated by the US consumer confidence which is still at historically low levels with people not spending or travelling much.

But he said that while international business had faced its own problems, it would see the least downturn of the three sectors, steadying itself despite a number of departures of staff in recent weeks and months.

"I think that those companies that are committed to Bermuda and are here will be in pretty good shape and those that are getting skittish because of the new administration in the US are a different case," Mr. Richards said.

"It all makes for a difficult and challenging year."

He said he hoped Bermuda did not catch the attention of the new US administration soon, but rather would improve relations between Government and both the US government and the international business sector.

"I am optimistic that in Bermuda the standard of living is as a result of people having a knack for figuring stuff out," he said.

"I am just hopeful that our success in the last 20 years has not dulled our sense of ingenuity and inventiveness because we really need to concentrate on that more than ever before.

"It is going to require us to test those instincts we have to try to find new horizons because I believe the old way of doing things is passé and we have to find a new way of doing things in the future."