Brian Rushton Of whisky, oil and banks

Brian Rushton,

Roll out the barrel

SCOTS have had plenty to worry about since their referendum on independence last September 18th. Oil prices have halved—bad news for a country where the oil and gas industry provides jobs for 200,000 people, or about 10% of total employment. Meanwhile, the pound has strengthened and world trade has stumbled, both awkward for a country that depends on exports. Yet despite all this, Scotland’s economy seems to be coping. GDP growth is holding up; the employment rate has risen to 74.1% and is now higher than Britain’s average of 73.4%; and by some measures wages are rising faster than they are south of the border. Why?

Exports are doing better than many predicted. The Index of Manufactured Exports for Scotland shows that in the past year manufacturing export volumes have risen by 2.7% in real terms. Some industries, like tourism, are doing particularly well, says Ronald MacDonald of Glasgow University. The publicity surrounding the referendum lured foreigners to hike in Scotland’s windswept mountains and taste its smoked salmon and whisky. During the first quarter of 2015 spending by overseas visitors rose by 13% year-on-year....Continue reading

via Brian Rushton, Of whisky, oil and banks