The economy is tough and it will get worse before better — but with hard work and optimism, it will turn.

This was the message at the recent 2009 Economic Forecast Breakfast, presented by the city of Federal Way, Metropolitan King County Council member Pete Von Reichbauer, Weyerhaeuser and Woodstone Credit Union.

“I look at my 401K, now it’s a 201K … yeah, times are tough,” said George Northcroft, King County director of business relations and economic development, joking with the breakfast crowd.

A review of real estate, transportation, the green sector, health care and Pierce and King county issues, as they pertain to 2008 and are forecasted to apply to 2009, were presented by a panel of experts.

Real estate:

Retailers closed down left and right in 2008, as approximately 8,000 businesses called it quits, said Jeff Lyon, chief executive officer of GVA Kidder Mathews. More will come in 2009 when an expected 16,000 retailers will go out of business, Lyon said. Large regional powerhouses, such as Weyerhaeuser and Boeing, are laying off employees.

Businesses that survived 2008 will need all the assistance they can get. Landlords will be smart to work with owners to help them in any way, Lyon said. A vacated storefront could stand that way for a few years to come if the retailer is forced to leave, he said. The success of the real-estate market is driven by the capital market, Lyon said. When that improves, so too will the real-estate market.

“I think we’ll see some light at the end of the tunnel when the capital goes up,” Lyon said.

Green/environmental sector:

The Puget Sound region has embraced the green sector. Resources and desires to build the industry are abundant in the region. And with President Barack Obama’s stimulus package, the sector has the potential to grow substantially, said Steve Dunphy, vice president of strategy and communications for Cascade Land Conservancy.