Conclusion
2.102 The regional economy has generally mirrored the national economy, going through a period of sustained and fairly stable growth and restructuring, with a shift from manufacturing to services. Expectations are that 2007 was a good year for the South West but a downturn in economic fortunes is ahead, though the timing and extent of this is unknown.
2.103 The South West is a comparatively wealthy and productive region, particularly compared with those English regions outside of the Greater South East. The region continues to raise its level of economic output, create additional jobs and increase incomes. The region can boast a diverse economy with its relatively highly productive economic engine in the northern part of the region and low productivity in peripheral parts. As with developed economies as a whole, SW industry is dominated by the service sector of which the business services sector, in particular, has experienced strong growth in employment and output. The region benefits from a skilled workforce, a high level of business stock and relatively high rates of investment in R&D.
2.104 The South West has attracted relatively high rates of inward migration. This population growth can fuel regional economic and productivity growth, particularly in the medium and long term. The short term effect, however, of this inward migration is uncertain and is largely dependent upon rates and types of participation in the labour market of these inward migrants.