Sussex is likely to escape the full effect of the economic slow down.

Experts are expected to adjust downwards forecasts for the county's economic growth for this year but say Sussex will outperform the rest of the UK.

Businesses in the county are confident that any setback will be short-lived.

Figures in the latest quarterly economic survey from Sussex Enterprise show business owners in Sussex are 20 per cent more optimistic about increasing turnover than their counterparts in the rest of the UK.

They are also more confident about profitability next year.

A Sussex Enterprise spokesman said: "Output growth estimates made last year are now seen as a bit optimistic. Last year, growth was estimated at three per cent for Sussex and 2.6 per cent for the UK for this year.

"We are still forecasting Sussex to outperform the rest of the UK but, in view of the world economic situation, we think the figures are slightly optimistic.

"Our forecasting model still predicits stronger growth in Sussex than the rest of the UK this year but we will have a reduced growth rate because of the wider problems."

The spokesman added there was nothing inherent in the Sussex economy, like heavy industry and manufacturing, that showed it was going to suffer as much as other areas. It was still safe to say the Sussex economy would outperform the UK this year.

Jobs have already been lost in the county with important employers, inc-luding Ericsson and Hosiden Besson, announcing redund-ancies in response to the worldwide economic slow-down, that has especially hit the telecoms and technology sectors.

First-quarter gross dom-estic product (GDP) rose 0.4 per cent, the same rate as the previous three months, according to the Office for National Statistics.

The upward revision comes after better-than-expected figures from the service sector, which accounts for more than half of the UK economy and is strongly represented in Sussex.