Our economic progress
Our Economics Director, Kenny Richmond, reflects on the consistent growth of the Scottish economy over the last two years, with economic output now above its pre-recession peak
Employment growth has also been strong with the number of people in work now at a record level.
We’re seeing growth in a number of our key sectors from financial and business services, tourism and manufacturing – particularly engineering and the oil and gas supply chain.
Last year was a very successful year for inward investment, with over 80 projects attracted to Scotland in 2013. This serves to highlight the key world-class assets we have – it’s the perfect showcase for the people, skills and knowledge in Scotland.
Increasing investment
Productivity in Scotland tends to be lower than other countries – with productivity growth a weak spot in recent years. However, we're seeing company investment in new plant, machinery and technology rising. This is certain to help increase our productivity over the next few years.
Companies that innovate and export tend to perform better. It’s this international competitiveness that's key to Scotland’s economic growth.
Kenny Richmond, Economics Director at Scottish Enterprise
Exploring overseas markets
We are also seeing growth in exports with both manufacturing and service sector companies increasing their overseas sales. Europe is Scotland’s largest overseas export market but European growth is expected to be relatively weak over the next year or two.
So, companies need to look at opportunities in other fast-growing markets, such as North America and Asia, in addition to Europe.
Innovation is the key to our success
Companies that innovate tend to grow faster. Innovation isn’t just about developing new or better products or services. It’s also about investing in marketing, skills and new technology.
Our evidence and experience shows that companies that are innovative, focused on efficiency and productivity and look to overseas markets are the ones that perform better. It’s this international competitiveness that's key to Scotland’s economic growth.
However, not enough of our companies export and not enough innovate. We need more companies in more sectors investing in innovation and exploring more markets.
And we need to see more companies raising their ambition and achieving that ambition.
Our annual review for 2013-2014