Experts say retailing, construction, IT and the automotive sector are likely to remain the worst affected sectors in 2009 as bosses continue to struggle to raise finance from banks which are still reluctant to lend.
But they also believe there will be opportunities for `entrepreneurial' companies . . . and sectors such as energy, defence, advanced manufacturing, engineering, science and innovation - as well as exporters - could prosper.
Andrew Semple, spokesman for EEF, the manufacturers' organisation in the region said: "It is crystal clear now that the coming year is going to be one of the most difficult that manufacturers have faced. The UK has fallen into recession very fast. The automotive sector remains very vulnerable, and that goes for the whole supply chain."
Steven Broomhead, chief executive of the North West Regional Development Agency, added: "The speed and momentum of these tough economic conditions over the past six months have taken probably all economists by surprise, but now, how we react to these challenges is the important factor.
"The north west was yet again the leading region outside of London in attracting foreign direct investments in 2007-08, and we have strengths in sectors which are likely to be more resilient - including energy, defence, advanced manufacturing, engineering, science and innovation."
Chris Fletcher, of Greater Manchester Chamber of Commerce, said: "Unfortunately there is no immediate end in sight to the current economic woes, and, if anything, things will probably get worse before they get better.
"Retail will continue to really struggle throughout 2009. The VAT cut will have been absorbed, and, with more people fearful for their own job situation, possible deflation in the latter half of the year and ongoing issues with rent and rates, there will be a perfect storm on the high street.
"The good news … any business connected with energy, environmental technologies and niche manufacturing - especially exporters - will continue to hold their heads above water."
David Costley-Wood, partner at KPMG restructuring in Manchester, said: "While things look bleak for many, we do expect to see some winners in among the casualties.
"Companies engaged in the defence, hi-tech and public transport sectors are coping well and in many cases expanding. Service providers such as security firms and even shoe repairers are doing well, and there is still liquidity in these markets.
"Similarly, value discounters such as Aldi and Lidl will continue to fare well.
"But I certainly don't think we've seen the worst of the impact that the financial crisis has had on the property sector. There will be some more high-profile failures in the north west next year."
Phil McCabe, of the Knutsford-based Forum for Private Business (FPB), said: "Many business owners, who are being forced to make redundancies in order to cut costs, face an uphill struggle to survive."
But Bill Murphy, managing director of BT Business, said: "The creativity displayed in the north west is impressive and I firmly believe that there will always be opportunities for innovators. The entrepreneurial flame continues to burn brightly in the north west."
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