Prospects for Yorkshire's economy are very bullish, according to CEO of Julius Baer International

Prospects for Yorkshire’s economy are very bullish, despite the uncertainties caused by the pandemic, according to the CEO of Julius Baer International.

Monday, 21st June 2021, 4:25 am
David Durlacher said the region was poised to benefit from being at the centre of global plans to create a more sustainable economy.
David Durlacher said the region was poised to benefit from being at the centre of global plans to create a more sustainable economy.

David Durlacher said the region was poised to benefit from being at the centre of global plans to create a more sustainable economy.

Mr Durlacher made the comments when he visited the wealth management group’s Leeds office, which has become a significant regional hub for Julius Baer International since it opened in 2017. It is part of Julius Baer Group, the Swiss private bank and wealth manager.

Mr Durlacher said: “The world economy pressed the pause button last year, but the Yorkshire economy has got resilience and adaptability at its core.

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He added: “Some people are asking, are markets over-priced? Is inflation something we need to worry about? We believe we are heading for a deeper, longer lasting recovery than the naysayers predict.”

“On the supply side there is a major shift from just in time to just in case. We believe short term inflation is not a red flag.”

He added: “There is pent up consumer demand and signs the consumer is going to lead demand during the economic recovery. We do see strong corporate balance sheets and there is great investment in R&D (research and development). Companies can see a way through this.”

“The UK is one of the leaders in pharmaceutical and offshore wind, which both have strong links with the region.”

“The end of the pandemic will restart the clock from a stronger position rather than pushing it backwards. We will see more robust supply chains, so that company fortunes are not imperilled by a blockade of shipping containers.”

“We are increasingly focused on the concern about wealth inequality. We have a serious interest in how all parts of society benefit.”

The Swiss private banking group opened offices in Manchester, Leeds and Glasgow in 2017 to help it reach a a wider base of UK clients.

Charlie Hague, the Executive Director in charge of the North East, believes the UK’s GDP (gross domestic product ) growth is going to be the strongest for 30 years.

He added: “A lot of companies, such as auto manufacturers, who closed their doors are now opening them up again.

“The demand from consumers, but also increasingly capex, is driving businesses in different directions.

“I was visiting a very high-end hand tools manufacturer and they had gone from triple digit to low double digit staff numbers over many years as overseas competition eroded their position. They are now hiring again. It’s all about sustainability and robustness of supply chains.”

“Our client base is fantastic - they cover the entire range. Having worked in London, I know that the Yorkshire market is very different. They have different time horizons and more of a focus on longevity.

“In South Yorkshire there’s a huge move towards to harnessing that old industry capability into modern technology.

“There are world leading developments in East Yorkshire around wind energy and sustainability, and agri-food advances in the north of the county.”