Unemployment in the regional is lower than the national average

A review by Experian for Scottish Enterprise Borders revealed that from 1999 to 2006 the economy grew annually by 3.6%, compared with 2% nationally.

Local unemployment was also lower at 1.4%, while the Scottish level stood at 2.5%.

However, the report found productivity levels in the region continued to lag behind other parts of Scotland.

While 79% of people living in the area were shown to be economically active, the under-representation of high growth industries like finance and communications continued to affect the region.

Wage levels

The study also found that the issue was affecting wage levels, which continued to be lower than the Scottish average.

Those behind the report said it was vital that population numbers continued to increase in the area, if it was going to sustain the current level of public services and support further sustainable economic growth.

SE Borders chairman Hugh Tasker said the evidence showed the Borders' economy was enjoying a renaissance.

He said: "Our traditional industries of agriculture, textiles and forestry are adapting and modernising in line with global market conditions while there is a greater emphasis on high value employment and higher wage levels.

"We are beginning to reap the rewards of our investment but we cannot be complacent.

"We must focus on the region's key industries which have the biggest potential for growth, in order to overcome these challenges."