The economy is unlikely to recover in the short term, the Chamber of Commerce warned yesterday.

At its annual general meeting yesterday, president Stephen Todd said: "At this time of our economic downturn job losses, downsizing and/or closure of businesses, and the slowing down in the construction industry with no new hotel development being scheduled are all clear indicators that we are still in the throes of recession.

"It is clear that it will be several "It is clear that it will be several years before any new hotel properties open their doors for business even if groundbreaking were to start in the near and foreseeable future.

"That the economy will recover in the near future is not something I think we can realistically expect."

Mr. Todd callled on Government to be prudent in its spending and said it should "not take the position that an approved ministry budget allocation is a green light to spend monies from the public purse without regard to restraint thereby burdening taxpayers at a time when it can be least afforded".

And he pledged to keep lobbying Government for the interests of those businesses the Chamber represents.

"This crisis was a very real wake-up call for Government, business leaders and residents," he said. "It signalled the beginning of the long and arduous task of reinventing ourselves to ensure that Bermuda will continue to set the standard as the leading international domicile, for conducting global business, and to reposition ourselves, once again, to attain the designation as the destination of choice for the business and vacation traveller."

Mr. Todd said several things could impinge on Bermuda's success including a weak public education system, Government's term limit policy and rising crime.

"Our economic stability is also of grave concern given the unstable current trends in international business, as we have seen an ever increasing exodus of companies leaving the Island to establish themselves in other jurisdictions as a result of an increase in taxation and operating expenses coupled with the challenges of retaining key personnel due to term limit restrictions placed on them.

"In the past year, our international reputation has been severely compromised. We have seen a marked deterioration in the social fabric of our society. Specifically, we have seen a significant increase in gun related deaths and serious crime. This has affected our reputation as a safe jurisdiction and has hindered our ability to attract and retain international business.

"It is imperative that the Bermuda Police Service have the public's unequivocal support and cooperation, to ensure that the perpetrators of these crimes are identified and brought to justice."