Economic growth in Sussex is slowing down but experts agree there is nothing for firms to worry about.

The county has still outperformed much of the UK over the past ten years and is expected to remain in a leading position in the next four, despite annual growth falling from 4.1 per cent to 2.6 per cent .

Richard Yorke, director of information group Business Strategies, said some of the problems were a consequence of the downturn in the travel industry.

He said: "The situation in Sussex reflects the slowdown being faced by the airline business at Gatwick, with its knock-on effect on suppliers in Brighton and Hove, Crawley and other towns.

"It is still a healthy rate of growth and it would have been virtually impossible to maintain the high-level of progress seen previously."

In a report on the Sussex economy, Business Strategies said there was a sharp slowdown in growth across the South-East but Sussex would perform slightly above the average, forecast at 2.5 per cent a year.

Growth across the region last year was 3.3 per cent.

Mr Yorke said: "The South-

East is still the UK's fastestgrowing region. Its performance this year and next will be way ahead of the national average.

"Manufacturing growth in this part of the country was down by 2.8 per cent this year but it was still growing and we expect it to grow by 2.8 per cent next year."

A report by economists at Dun and Bradstreet named Brighton and Hove as the most profitable business location in the UK, a title attributed to the city's low-wage economy.

Danny Knapp, corporate finance partner at the Brighton office of BDO Stoy Hayward, said research pointed to tough times ahead but he expected Sussex to avoid a recession.

He said: "Sussex's strong economic performance in relation to the UK's average may slip as trading conditions in different parts of the economy are mixed.

"The boost traditionally given to the Sussex economy by the air travel, finance and business services is negated by the clear impact September 11 has had on them."

A severe shortage of modern commercial property in the county is also expected to hold back growth.