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This item was published during the term of a previous administration that ended in April 2007

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'Performance reflects global downturn'

09/07/2003

Scotland's manufacturing export performance over 2002 largely reflects the global economic downturn, but the country is well placed to move forward when demand recovers, Deputy Enterprise Minister Lewis Macdonald said today as the Scottish Manufactured Exports 2003 (Quarter 1) figures were published today.

He said:

"These figures confirm the real difficulties faced by all manufacturing -and especially exporters - over 2002 and I recognise that things remain difficult for many businesses.

"The poor export performance over 2002 very much reflects the subdued growth in the major global economies over that time.

"The data for the most recent quarter, although still showing a decline in real terms, suggest that we may now be past the worst. Recent evidence from Business Surveys, and the Fraser of Allander Institute's report published today, also seem to suggest that confidence is picking up.

"As a small and open economy, Scotland's economic well being is inextricably linked to global economic circumstances and there are no quick fixes for economic growth. Our job is to ensure that we have the conditions to maximise sustainable economic growth in the medium and long term. Smart, Successful Scotland, our Enterprise Strategy, is crucial to this.

"We are now focussed on delivering the strategy, along with a host of other measures that will all contribute to our future prosperity and will help businesses both now and in the future. This means, for example, investment of £450m over 10 years to three Intermediate Technology Institutes, our commitment for spending on transport in Scotland to reach £1billion per year by 2006, and the freezing of business rates.

"This action on the ground, allied to the low inflation and low interest rates that Scotland continues to benefit from, mean that Scotland is well placed to move forward when global demand recovers."

Scottish Manufactured Exports 2003 Quarter 1 shows that manufactured export sales increased by 2.4 per cent in cash terms but decreased by 3.4 per cent in real terms, compared with the previous quarter. This was the first increase in cash terms since 2001 Q1, and the smallest decrease in real terms since 2001 Q3.

Over the year to 2003 Q1, manufactured export sales decreased by 20.9 per cent in cash terms and by 24 per cent in real terms.

Page updated: Wednesday, July 21, 2004