The Scottish economy [May 1984]

In summary, there is evidence to suggest that the recovery of output in the Scottish economy is becoming more broadly based. Exports are now providing a much needed stimulus to demand and capital goods industries are beginning to benefit from the upturn in investment in plant and machinery. The short-term outlook for capital goods industries is made all the better by the prospect of firms bringing forward their investment plans to take advantage of the phasing out of capital allowances. While the abolition of capital allowances should in the medium term also provide a boost to employment, over the longer term an effective increase in the cost of capital is a poor augury for a Scottish economy relatively specialised in the production of investment goods. Detailed analyses of sectoral trends within Scottish industry is provided, as well as labour market trends and regional economic and unemployment conditions