Sussex has beaten off problems caused by the strong pound and could continue to outperform the national economy, says NatWest's chief economist David Kern.

Mr Kern (below) was speaking at a breakfast meeting at The Hawth, Crawley, on Friday.

He said Sussex had capitalised on its skilled workforce, enterprise and high quality of life.

However, he noted some parts of Sussex were faring better than others.

Mr Kern said while West Sussex's unemployment rate of just 1.4 per cent of the workforce was far lower than the 3.8 per cent national figure, in East Sussex the figure had reached 4.3 per cent and in Brighton it stood at 5.7 per cent.

"Although manufacturing accounts for only some 14 per cent of the workforce compared with some 18 per cent at the national level, the recent overvaluation of sterling has caused problems for many local companies.

"Although West Sussex is considerably more affluent than East Sussex, in terms of income per head, both have enjoyed, over the last decade, population growth at a rate almost double the national average and a little higher than the South-East average."

He called for economic caution and careful planning in order to keep Sussex well positioned.

Mark Froud, director of economic research at Sussex Enterprise, said he broadly agreed with Mr Kern's assessment.

He said: "Sussex is one of the leaders in economic growth in the UK." Unemployment remained a problem along the coastal strip although this presented an opportunity to employers looking for new staff.

Sussex's high-tech manufacturers had managed to survive problems caused by a high pound and weak euro.

Ken Bodfish, executive councillor for regeneration on Brighton and Hove Council, said Mr Kern's analysis was sound.

He said there was a split in the economy, with Brighton having been dubbed the most profitable town in Britain while unemployment remained a problem.