Scotland's economy will continue to grow
SCOTLAND’S economy is likely to continue growing this year but at a slower rate compared to six months ago, a new report today suggested.
The Lloyd’s TSB Scotland Business Monitor, which has been tracking the Scottish economy for ten years, noted that with an economy expected to have grown by around 2.3 per cent last year Scotland was entering 2008 "in good shape".
The forecast is marginally more optimistic than a similar report by the Bank of Scotland four weeks ago.
5 per cent annual rise in retail sales suggested consumer confidence had not slumped, unemployment remained close to a 33year low, and house prices in Scotland continued to increase although at a lower rate.
Lloyds TSB Scotland chief economist Professor Donald MacRae said: "Although business confidence has fallen, particularly in the service sector, consumer confidence has not.
"In 2007 the Scottish economy should grow at around 2.3 per cent.
"Despite the credit crunch the Scottish economy is in good shape to face the challenge of 2008."
A Scottish Government spokesman said: "We welcome the latest Lloyds TSB report which indicates that the Scottish economy continued to grow in the last quarter of 2007.
Original source : The Scotsman
