Ararat Rural City Council economic development manager Clyde Humphries said Gross State Product (GSP) data released late last year, when translated into the Gross Regional Product (GRP) showed strong growth for this region, despite the global economic crisis and a generally bleak outlook.

"Compared with June, 2006, the data showed strong growth in both private and public fixed capital expenditure - over 30 per cent in both cases,'' Mr Humphries said.

"And the September quarter unemployment statistics underlined this positive growth further with Ararat having one of the lowest unemployment figures for municipalities in this region.''

These figures were 6.2 per cent for Ararat Rural City, compared with City of Ballarat 7.9 per cent, Horsham Rural City Council 6.2 per cent, Horsham central 7.7 per cent, Northern Grampians Shire Council 6.5 per cent and Pyrenees Shire Council 6.6 per cent.

Mr Humphries said the Ararat region's diverse economy was helping to provide a buffer against tough times.

"We have a strong, diverse economy that is demonstrating how flexible and adaptable our business operators truly are,'' he said.

"Ararat's strong manufacturing output had grown by 20 per cent, with the metal and metal manufacturers leading the way with a 45 per cent increase in production.

"However, agriculture has suffered a 70 per cent drop in cropping and grain output across the region, compared with June 2006.

Ararat Rural City Council's rural business officer Ann-Maree Browne said this was offset by the 40 per cent production increase enjoyed by sheep farmers and increases in other non-grain operations, resulting in a small across the board 1.59 per cent decline for agriculture, generally.

"There's no question that climate change is having a major impact on farmers in this region, and we're seeing a shift in farming practices as a result,'' Ms Browne said.

"We'll continue to work closely with farmers to help them adjust to the changing conditions and to provide information and referrals over the coming year.''

Mr Humphries said he was confident the region's economy would continue to power through 2009.

"We're just seeing the major Ararat prison expansion and new regional police headquarters coming to fruition, and there are several more major projects in the pipeline,'' he said.