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Current News: Scottish economy weathering the storm

A new report from Lloyds TSB Scotland has revealed the Scottish economy appears to be weathering the global financial storm. The new figures show the economy North of the Border is still growing, though at a reduced rate. Meanwhile, the bank has unearthed no evidence that the restriction of credit or rising levels of concern about credit concerns will have an impact in the coming half year.

Some 36 per cent of firms questioned for the survey reported an increase in turnover with 28 per cent admitting to a fall, however, expectations of increasing turnover are up.

Chief economist at Lloyds TSB Scotland Professor Donald MacRae commented: "Scottish economic growth is slowing from the latest annual underlying growth rate of 2.1 per cent. Claimant unemployment at 2.5 per cent is the lowest for more than 33 years. House prices in Scotland continue to increase year on year. Although this business monitor has recorded a slowing of the Scottish economy at the end of last year and the beginning of 2008, business expectations for the next six months have improved. There is no evidence of restriction of credit or rising levels of concern about credit costs. Costs overall are, however, a concern for most Scottish businesses. After above trend growth in 2007, the Scottish economy is facing reduced growth in 2008 nearer to its long-term growth rate."

The Scotsman

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