Business editor Trevor Sturgess reviews the business year in Kent and Medway

It's been a busy year for business, with the county once again underlining its credentials as a great place for business growth.

Potential is turning into reality, with many experts commenting on the fact that Kent and Medway have tended to avoid the worst of the economic downturn.

High-speed trains are slowly transforming the countys former reputation for a poor rail network. They are attracting more commuters into the county and Locate in Kent officials are hopeful that the service will begin translating into inward investment and job creation.

The year 2011 promises more reality, with the opening of Turner Contemporary in Margate, heralding worldwide publicity and a possible visitor "explosion", the opening of the new Marlowe Theatre in Canterbury, the Open golf in Sandwich and the run-up to the 2012 Olympic Games.

But business remains cautious. Paul Barrett, director of Canterbury-based car dealership Barretts, said: "My gut feeling is that the first half of the year is going to be tough but I hope the second half will be slightly better. It feels like it's going to be a reverse of 2010 when we had a strong first half of the year and a second half that has been very difficult.

"Everything is pointing towards the first quarter being quite a struggle - we've got the VAT increase, not that I think that will have a huge impact on our business of selling cars. I don't think 2.5 per cent is going to make people change their buying decisions. It's other things - about how people feel about their own financial wellbeing and how confident they feel in their own future prospects such as jobs etc."

Public sector job cuts would also affect the situation. Interest rates were also likely to go up, but he did not think a small increase would make much difference. It would be tough getting banks to lend and there would be challenges. But he was confident the motor trade would do at least as well as 2010 when his company enjoyed a record year. Nevertheless, he admitted that for the economy as a whole, "it's going to be hard."

• See Kent Business, out next week with most KM Group paid-for weeklies, some seasonal business accolades)

Some events in 2010

Medway-based BACTEC clears Falklands of mines

Scitec, Sittingbourne, wins two Queen’s Awards

SEEDA axed, to be replaced by Kent, Essex and East Sussex LEP

Tracey Emin unveils neon sign "I Never Stopped Loving You" at Margate

Norfolkline bought by DFDS Seaways

KRBS narrowly wins vote to become a bank

Dover Harbour Board faces opposition from Dover MP Charlie Elphicke over privatisation plan

Trevor Baylis opens Medway Innovation Centre

Karen Lord becomes first female MD of John Lewis Bluewater

LD Lines axes Dover-Boulogne ferry

Flybe launches services from Manston to Edinburgh and Manchester

Gillingham FC ends Kent Reliance’s shirt sponsorship.

Pentagon Holdings, Orpington, tops MegaGrowth 50 table with 168.9 per cent growth

DB confirms it wants to run high-speed trains from Germany to St Pancras International

Carol Lynch heads Kent Community Foundation

Hadlow College wins outstanding verdict from Ofsted

Borealis Infrastructure buys High Speed One.

Eurostar announces £700m investment in train facelift and 10 new Siemens trains, sparking row with French manufacturer Alstom. DB German Railways set to compete.

Year ends with snow disruption, costing Kent businesses millions of pounds in the run-up to Christmas.

We said goodbye to:

Bill Laidlaw, SeaFrance sales director and staunch supporter of Kent girls’ and women’s cricket.

James Pilcher, aged 50, chairman of Caxtons chartered surveyors.