ITEM Club warns of slowdown in Scottish growth
Growth likely to fall back to 2.3% in 2008
Ernst
& Young’s Scottish ITEM Club has warned that while growth in financial
services is creating a vibrant Scottish economy there are ‘potential clouds on
the horizon for 2008’.
The economic group in its summer update said
Scotland
would enjoy a growth of 2.5% in 2007 but growth is likely to fall back to 2.3%
in 2008, with interest rates and the slowdown in public spending growth
constraining both the UK and Scottish economies.
Dougie
Adams, economic advisor to the Ernst & Young Scottish ITEM Club, said:
‘Though Scottish consumers are less exposed to the effects in rising interest
rates and Scottish producers less dependant on export markets than the UK
average, Scotland cannot expect to escape the softer UK conditions we forecast
for 2008. However in context of recent years this still represents a relatively
strong performance for Scotland.’
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