What is the GDP of Scotland?
GDP of Scotland is Gross Domestic Product. It is the most common criterion to measure an economy. GDP can compile for a country, a region (such as Tuscany the Italy or Burgundy in France), or several countries combined, as in the case of the European Union(EU). The GDP is the total of all value_ added created in an economy. The value _added means the value of goods and services that have been produced minus the value of goods and services needed to make them.
GDP of Scotland 1998-2019.
The Domestic gross product of Scotland in 2019 was approximately 167 billion British pounds, compared with 16 billion pounds in 2018. During this period, Scottish GPD’s growth reached its highest level in 2011 when a growth rate of 3.8 per cent was recorded. Compared with 2009, when Scottish GDP shrank by 3.2 per cent.
Problems appear with Covid 19
Pandemic has made a different situation in Scotland. The statistics show that the market is more than Supply. In the care units, there are equipment and staff shortages.
Liberal Democrat health spoke person Alex Cole-Hamilton said the audit revealed an NHS” scarred by the pandemic”. One hospital said the experience would have a “long-lasting impact” on its staff.
“while creating additional ICU bed capacity was challenging, the additional nursing staff required to care for patients in these areas were always the greatest hurdle,” said a hospital representative.
The Economy of Scotland.
During the 1970s and 80s, Scotland economy faced lots of problems like lots of European countries.
Unemployment was a severe problem, especially for the countries with great industry. Lots of governments tried to improve this situation.
In the 1980s, Scotland economy was getting better. Scotland economy is small and open and accounts for about 5 per cent of the United Kingdom’s export revenue. Although Britain is controlling Scotland economy situation, there are lots of financial problems there.
What is the meaning of Independence for Scotland?
Scotland’s economic situation isn’t as powerful as Britain’s. But is it a reason for Scotland to remain in Britain or separate from it?
During the 2014 referendum, an independent Scotland’s approach to currency was one of the most critical issues. Scotland’s independent money was as important as a country’s flag importance. It was like an identity of a nation.
In the 2014 campaign, Scotland’s government announced that Scotland’s economy would be independent with Sterling. It will continue with Sterling as part of a formal monetary union. There were three foremost UK party leaders.
The Scottish government’s new proposal is to use Sterling without a currency union and set up a replacement currency as soon as possible.
In September 2016, SNP established Growth Commission(SGC) to recommend policies for an independent Scotland. In 2018 SGC proposed that Scotland can keep the Sterling but not as a traditional currency. Independent Scotland would be free from paying formal fiscal constraints.
An independent currency could have lots of advantages for Scotland’s economy. In this case, Scotland can have more control over its monetary and fiscal policy. Scotland’s validity develops. There is a balance between economic problems against external shocks.
This process will create some problems for Scotland. For example, Scotland can’t support its internal bakery system. It will face a lack of budget because of oil income reductions.
Scotland’s Central bank decision.
Scotland took one of its most important decisions in September 2014. It decided to leave The UK and become a new independent state.
Arranging an independent currency was one of the most critical decisions that Scotland faced. Currency independence will have a significant role in Scotland’s economy. Scotland economy would be weaker after its independence. Scotland and the United States could have a better situation after separation if they had an agreement on their interest. If they had unity with each other, they could have better households and business benefits. If they used the same currency, there would be more benefits for both of them.
From September 18th voting, it isn’t clear that what currency does Scotland uses. If Britain’s leaders disagree with Scotland’s currency independence, Scotland should use the pound or a currency that its central bank manages.
Andrew Hughes Hallet, a member of the Scottish government’s council of economic advisors, said Scotland could set up an embryonic central bank of its argument that it was outsourcing its functions to the bank of England, even if there were no currency unions.
Using an independent currency necessitates having a central bank for Scotland. An independent central bank can manage the new national money. An independent central bank can set specific policies following a mandate to ensure price stability. However, it is hard to use a new currency and establish a new central bank for Scotland.
The creation of the traditional currency in Scotland may have some advantages:
ü Stability: there won’t be immediate changes in lots of conditions of existing policies.
ü Administrative simplicity for industry and individuals.
ü No trading costs and additional difficulties in matching assets and liabilities.
ü A new currency would give Scotland the freedom to use monetary policy. but it
Disadvantages of new money:
ü To use new independent cash, Scotland and UK need to negotiate and harmonize aspects of regulations. However, there is no insurance that they guarantee their agreement.
ü By the recent news of the Eurozone, it is hard for two countries to be sure of the long continuation of the currency union.
((Currency union would in the absence of a political inion bring instability and risk.))
In 2018 the sustainable Growth Commission, an economic body led by former SNP MSP Andrew Wilson, recommended that” an independent Scotland should continue to use Sterling without a formal monetary union before transitioning to a new currency at an unspecified future date.”
Although the sustainable growth commission said this decision would cause lots of problems in the future, independent currency may create some opportunities for Scotland-Particularly over the long term.
Can Scotland afford it to be alone?
After the referendum on September 18, Scotland’s budget has decreased, it has lost EU membership. It has faced lots of problems after the Pandemic. There isn’t a good condition. In recent years’ oil and gas prices weren’t stable.
According to Lloyd:” [if Scotland rejoined EU], it would have access to the bloc’s markets. And if Scotland did plump for independence, it would also have to reapply to join the European Union. European countries, like countries everywhere, will be trying to recover from the effects of Covid in different ways and at different speeds. That will mean that EU countries will tend to look inward and to favour their projects rather than going for big export drives.” It is going to be a difficult time in the next decade for everybody, including the EU, as a central governing body itself, and Scotland will be a minor part of the considerations there.”
Murphy highlights an alliance with Northern Ireland as a potentially significant strategic move for Scotland. He says: “if there was a very rapid transition towards soft borders with Northern Ireland, which now has effortless access to the rest of the EU market, it could become a transit country to Scotland.”
Murphy expands on his theory that Scotland could effectively divert its source supply chains. “there would be a border with England, but Scotland is small enough to be capable of being supplied very easily from Europe.” he says.
