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Exports decline easing
01/07/2009
New figures show the decline in manufactured exports from Scotland is easing, Finance Secretary John Swinney said today.
There was a 3.4 per cent fall in the level of Scottish export sales in the first quarter of 2009, while sales decreased by 6.5 per cent over the year.
The previous estimates, published in April, showed a fall of 9.6 per cent in the fourth quarter of 2008.
Commenting on the figures, the Mr Swinney said:
"No-one can deny that Scotland - and in particular our export industry - has been hit by the global downturn. With our key export markets suffering, the obvious result is a weakening in demand for Scottish products.
"But the decline in Scottish exports, while disappointing, mirrors global trends and has eased somewhat since the last statistics were published in April.
"Nevertheless today's figures emphasise the importance of Scottish Government activity to position Scotland's economy for recovery.
"Through our comprehensive economic recovery programme we have accelerated capital spending to support up to 15,000 jobs and provide a direct and timely stimulus to our manufacturing and construction sectors.
"Our programme also includes Scottish Enterprise's decision to invest an additional three million pounds over three years in the Scottish Manufacturing Advisory Service (SMAS), doubling the number of companies this vital service can reach and helping our manufacturing sector emerge stronger when the good times return."
As global demand has declined, export-orientated economies have been hit hard by the economic slowdown. Comparing Q1 2009 with the previous quarter, the seasonally-adjusted value of exported goods fell by 31.5 per cent in Japan, by 13.5 per cent in the UK and by 11.6 per cent in the US. Although these OECD data are not directly comparable to Scotland's IME, they illustrate the extent to which falling demand has hit exports globally.
Further, the global economic downturn has severely affected Scotland's key export markets. The largest consumer of Scottish exports - the USA - saw GDP decline by 1.5 per cent in Q1 2009 compared to the previous quarter.
Scottish Enterprise fully recognises the benefits of SMAS and approved an investment of 11 million pounds over the next three years to accelerate the planned expansion of SMAS to ensure more companies can gain access to the high quality advice - vital support in the current economic climate. This involves recruiting 12 additional seasoned manufacturing professionals with the aim of doubling the size and capability of SMAS. Increasing advice to businesses and individuals is a central part of our approach to economic recovery.