User:Globaltraveller/Economy of Scotland

Economy


Scotland has a highly developed western style open mixed economy which is closely linked with that of the rest of Europe and the wider world. Traditionally, the Scottish economy has been dominated by heavy industry underpinned by the shipbuilding, coal mining and steel industries. Petroleum related industries associated with the extraction of North Sea oil have also been important employers from the 1970s, especially in the north east of Scotland. De-industrialisation during the 1970's and 1980's saw a shift from a manufacturing focus towards a more services orientated economy. Edinburgh is the financial services centre of Scotland and the sixth largest financial centre in Europe, with many large finance firms based there, including: the Royal Bank of Scotland (the second largest bank in Europe); HBOS (owners of the Bank of Scotland);  and Standard Life.



In 2004, total Scottish exports (excluding intra-UK trade) were provisionally estimated to be £16.7 billion, of which 73% (£12.19 billion) were attributable to manufacturing. Scotland's primary exports include whisky, electronics and financial services. The United States, The Netherlands, Germany, France and Spain constitute the country's major export markets. In 2002, the Gross Domestic Product (GDP) of Scotland was just over £74 billion ($130 billion), giving a per capita GDP of £14,651 ($25,546). As of 2006, the unemployment rate in Scotland stood at 5.1% - marginally above the UK average, but lower than in the majority of EU countries.

Although the Bank of England is the central bank for the UK, three Scottish clearing banks still issue their own Sterling banknotes: the Bank of Scotland;  the Royal Bank of Scotland;  and the Clydesdale Bank. These notes have no status as legal tender anywhere in the United Kingdom, although they are fungible with the Bank of England banknotes. Despite this, Scottish-issued notes are often refused in England and they are not always accepted by banks and exchange bureaus outside the UK. The Royal Bank of Scotland still produces a £1 note, unique among British banks. The current value of the Scottish banknotes in circulation is £1.5 billion.