Why is this National Indicator important?
If we are to deliver improved productivity and sustainable economic growth, we will need to place greater emphasis on exports. Further integration with the world economy offers Scotland a greater opportunity to tap into new and larger markets around the world, giving increased access to capital flows, new technology, cheaper imports and larger export markets.
The indicator measures the growth in the value of goods and services that Scotland exports to other countries, including the rest of the UK, compared with the growth in overall GDP.
The Scottish economy is already open to world markets, with Scottish exports, including sales to the rest of the UK, in the top quartile of 31 OECD comparator economies. However, recent experience is mixed, with growth slightly less than the growth in GDP. Since 2002, the main source of export growth has been to the rest of the UK, with international exports experiencing a decline over this period (although they have increased in the most recent year).
What will influence this National Indicator?
The success of Scottish exports reflects the competitiveness of Scottish companies, their links to world markets and world economic conditions. The Scottish export market has faced challenging conditions over the past five years. The manufacturing sector, particularly electronics, was heavily exposed to a global economic slowdown between 2000 and 2003. In addition, increasing global competition has seen many low cost producers relocating manufacturing activity to the lower cost economies of Asia and Central and Eastern Europe.
More recent data suggests that this trend in declining overseas exports has bottomed out and overseas exports as a proportion of GDP increased between 2004 and 2005. The recent experience in export markets re-emphasises the importance of concentrating on knowledge-intensive high value-added sectors.
What is the Government's role?
Scottish Development International (SDI) supports companies in Scotland to do more business overseas. This includes helping them develop export strategies and increase the export of goods and services. But it goes beyond that. A significant proportion of SDI activities are linked to increasing Scottish manufactured exports, because of the focus on Scotland's priority industries (in particular, electronic markets and food and drink). And SDI's focus on companies with high growth potential means that international support often features strongly.
How are we performing?
Over the period 2002 to 2007 exports have grown on average by 3.8% per annum. Over the same period GDP at current prices grew on average at a higher rate of 5.6% per annum. In 2007 the gap was -0.8 percentage points, an improvement of the position compared with the difference of -1.2 observed for 2006.
Source: Scottish Government, Office for National Statistics (ONS), Global Connections Survey
Note: The Global Connections Survey methodology incorporates new information into the export analysis which often reflects improvements made possible by the availability of additional years' survey responses. Therefore, previously published estimates are subject to revisions.
Methodology
This evaluation is based on: any difference in the gap within +/- 0.1 percentage points of last year's figure suggests that the position is more likely to be maintaining than showing any change. A decrease in the gap of 0.1 percentage points or more suggests the position is improving; whereas an increase of 0.1 percentage points or more suggests the position is worsening.
For information on general methodological approach, please click here.
Further Information
Scotland Performs Technical Note
Statistics Topic Page
Who are our partners?
Scottish Enterprise
Highlands and Islands Enterprise
Scottish Development International
Local Authorities
Related Strategic Objectives
Wealthier and Fairer