Evening Post Business Editor Mike Ribbeck talks to those in the know in the city about why despite all the forecasts, 2012 might not be all doom and gloom in the Bristol area

IF you believe everything you read, then the country is permanently on the brink of financial collapse. Tales of economic doom and gloom, empty high streets and the chaos in the eurozone have dominated the headlines for much of this year.

But despite the bleak state of the economy there is still plenty to be optimistic about when it comes to the financial wealth and health of Bristol and the surrounding area.

As 2011 wound to a close there was a series of announcements that can only bode well for Bristol in the future.

There is a growing feeling that a momentum is building in the city which will see it become a major player once the downturn finally starts to recede.

Top of the list was the announcement that all five public transport schemes in Bristol and the surrounding area have been given Government backing to the tune of £200 million.

Although the chances of Bristol getting a tram now appear non-existent, work will start in the spring on a series of improvements to the city's much-criticised transport system.

Bristol Airport is gearing itself up for some major changes with work on its £120-million expansion due to get into full swing this year.

Added to that the Enterprise Zone which was announced in the budget will start to make its presence felt in Bristol The aim is to create thousands of jobs by bringing hundreds of new firms to the city.

The aim is to create a hub of creative and digital businesses based around the former diesel depot set which was earmarked by the South West Regional Development Agency for the failed indoor arena.

The agency itself, which had a budget of £200 million is set to disappear for good in March and will be replaced by the Local Enterprise Partnership headed by Wessex Water chairman Colin Skellett.

This year Bristol will also find out wether it has been chosen as the venue for the Government's Green Bank. The city, with its long association with the environmental movement, is a front runner in the multi-million race.

And Phil smith, pictured left, the head of Business West, believes there are plenty of reasons to be cheerful. He said: "Welcoming in a new year is always a time for great optimism where we put behind us the trials and tribulations of the past year and move forward in a more positive state of mind.

"For business this is a real challenge after the year we have just had which truly did provide us with a bit of a roller-coaster ride.

"In 2011 the business community had a tough time, with economic recession, high unemployment, high inflation, national strike action and falling sales. And all this against a backdrop of a government talking of putting private sector jobs growth at the top of its agenda and protesting how critical business is to our local and national economy.

"It has been undoubtedly tough and in some quarters there is still a perceptible fear that the financial crisis is entering a new stage with concerns that economic growth will continue to prove elusive in 2012.

"But blanket negativity will get us nowhere, particularly as many of our Business West members tell us they are quietly confident about continuing success. Business must continue to stand up for itself and reinforce its central role in both wealth creation and job creation. Business West will certainly carry on lobbying hard for business."

One of the hardest hit sectors has been retail, but Bristol has escaped the worst thanks to Cabot Circus.

General manager Kevin Duffy said: "We are delighted with the way we have finished the year but like all retailers we are preparing ourselves for a very tough 12 months.

"But it should be remembered that in comparison to lots of other parts of the country, Bristol is still in a relatively healthy condition. Things are bound to be difficult but we are still in a much better position than many other parts of the country."

Ben Yearsley, from stockbroker Hargreaves Lansdown, believes the cure to all the current economic woes cannot be properly addressed until the problems of the euro are properly dealt with.

He said: "It is all down to the politicians. There may have been a big fuss about David Cameron vetoing the agreement but that only covered up the fact that nothing has been agreed. The euro problems are still weighing down our economy and until they are dealt with we will not see an improvement and that has a direct impact on businesses wherever they are."

Matthew Hiles, director of property firm CJH Land, agrees. He said: "2012 is certainly going to be difficult as the government continues to try and reduce its debt while ongoing issues with Europe and the Euro will mean many banks will continue to restrict lending.

"However I think that if you focus on the important aspects of your business – whether small or large – there is no reason not to prosper.

"At CJH Land we will continue to build on our relationship with the regional and national house builders who operate within the South West. As residential land agents, understanding our market is a crucial aspect of our business. It allows us to advise our clients on the most appropriate form of development on their land through the design and planning stages and how to maximise the value of their land through the sale process."

One sector which has always been seen as a bellwether of the economy is commercial property.

The feeling is that when the cranes start operating again the good times are returning.

Andrew Hardwick, pictured left, from Williams Gunter Hardwick said: "There is a palpable sense of unease about what 2012 means for the commercial property market. In Bristol certainly the development process has stalled as a result of both a lack of occupier activity and lack of development finance.

"Hatches are firmly battened in the office market and times are certainly tough on the high street but reports of its death are certainly premature and exaggerated.

"The bright spot in the gloom appears to be the industrial sector that is bolstered by demand from the distribution sector as we are seeing with the likes of Avonmouth."