THE economy is in great shape - but that is no consolation to struggling Northern companies according to a leading economist.

Dennis Turner, chief economist at HSBC, was speaking to more than 100 of the region's leading insolvency practitioners at a meeting of the Society of Practitioners of Insolvency held at Old Trafford.

Mr Turner said: "The Government and the Bank of England are doing an excellent job, we have the lowest inflation since the 60s, the lowest unemployment in 20 years. Interest rates are likely to rise next year, but not by much.

"But all this good news must be salt in the wounds of the many companies in the North of England which have failed this year. The benefits of growth are never distributed evenly - industries like agriculture and manufacturing are badly under performing, having a major impact on the region.

"It will be a long time before we see the North/South divide broken down, if ever. Insolvency practitioners have a vital role to play in the economic success of the region - in the rescue and turnaround of failing companies where there is hope and the maximisation of returns to creditors when firms cannot be saved."

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