The UK economy grew by a better-than-expected 0.3% at the start of the year, which means the country has pulled back from the brink of its third recession since the financial crisis struck in 2008.
The first Office for National Statistics estimate, which reverses a 0.3% contraction in the final three months of 2012, was fuelled by growth in the powerhouse services sector – which accounts for more than three quarters of GDP nationally but around 80% across Devon and Cornwall, chiefly thanks to the reliance on tourism jobs.
Services grew by 0.6% between January and March, driven by 1.1% growth in the retail, hotels and restaurant trades sector.
There was gloom, however. Construction activity plunged by 2.5% and still remains 18.1% below pre-financial crisis levels.
Production and manufacturing edged 0.2% higher at the start of the year, but are also significantly down on 2008 – by 13.4%.
The economy as a whole is still 2.6% below the 2008 peak.
Carleen Keleman, chairman of the Institute of Directors in Devon and Cornwall, said: "Today's figures are better than many people were expecting.
"Knowing that the coalition's current fiscal policies are working to improve the long-term growth potential of the economy is encouraging confidence to unlock investment. Many companies are sitting on cash reserves and confidence is important for them to invest in new technologies, expansion and non- EU exports."
But she added: "The elephant in the room is still the potential impact of the fragilities in the eurozone."
Tim Jones, chairman of the Devon and Somerset Local Enterprise Partnership, said there is a "very significant sense of relief" following the release of the figures.
He said: "While there has been clear signs of growing confidence in the area, we were always aware we needed the national picture to improve – which has effects for inward investment and funding decisions.
"We have been hearing of firms recruiting, more self-employment, business just getting on with it. Hopefully now we are seeing the start of an upturn."
Mel Stride, Conservative MP for Central Devon, said: "Today's growth figure suggests the economy is healing and my sense is that business is beginning to pick up in the South West."
The figures will relieve some of the pressure on Chancellor George Osborne to rethink his austerity policy, following recent warnings that the UK is a "crisis economy" and last week's ratings downgrade. But some economists described the bounce back as relatively "feeble".
Business Secretary Vince Cable said the figures are "modestly encouraging", but Shadow Chancellor Ed Balls said the Government has overseen "the slowest recovery for over 100 years" and "stagnation".
