The economy of Swindon and the South West will out-perform the national recovery in 2004, putting it among the UK's top three growth regions, according to the senior economist with property consultants King Sturge.

In his annual assessment of the region's prospects, Dr Angus McIntosh, King Sturge's head of research said: "The South West's economy will grow as strongly as the South East in 2004 at 3.1 per cent.

"The only region likely to top that achievement will be the East of England, which should grow by 3.2 per cent, while the national average will be just 2.8 per cent," he said.

Among the factors likely to fuel the region's resurgence will be a long-awaited return to growth for industrial production and a re-emergence of the business services, dot.com and technology sectors.

Added Dr McIntosh: "This does not signal a simple return to earlier 'good times': this new wave of growth is the result of an increased focus on productivity.

"We shall still see basic jobs, in manufacturing and call-centres, going overseas to cheaper economies. But the South West will benefit from a growth in high-end jobs among knowledge-based sectors, including interactive call centres," he said.

David Spencer, partner in charge of the firm's Swindon office agrees.

He said: "We are already seeing signs of this with enquiry levels up across the board for employment land and premises including residential sites.

"The future is looking bright for Swindon."

Dr McIntosh also predicts that the industrial market will see a return of demand for warehouse space, polarised towards the best located sites for motorway access which should, naturally, benefit Swindon.

In addition, retail and leisure markets will also polarise towards in-town and shopping centre locations, while secondary locations will continue to decline.

Dr McIntosh concludes that changes in the alcohol and leisure licensing rules, giving control to local councils and more 24 hour licences, will lead towards more pubs and nightclubs in town and city centres like Swindon.

This will be at the expense of suburban and rural locations which will decline.