§ Mr. McMasterTo ask the Secretary of State for Scotland if he will make a statement on the prospects for the economy of(a) Scotland, (b) Strathclyde and (c) Renfrew District.
§ Mr. StewartThe economic prospects for Scotland, like those for Strathclyde and Renfrew district, will depend on the competitiveness of its industry. The Government have ensured that many of the factors determining competitiveness, and hence economic growth, are now firmly in place: inflation is at its lowest rate for almost 30 years; United Kingdom interest rates are at their lowest level for 15 years, as well as being the lowest in the European Community; and unit labour costs in manufacturing are growing more slowly than those in Japan and Germany.
Economic forecasters monitored by the Scottish Office Industry Department predict that these factors, combined with the lower exchange rate, will result in positive economic growth in Scotland in 1993, with companies competing successfully in domestic and international markets. Indeed, Cambridge Econometics' recent forecast suggests that Scottish gross domestic product growth in 1993 will be 2.2 per cent. compared with 1.4 per cent. for the United Kingdom as a whole. Moreover, this positive rate of growth compares favourably with the negative rates predicted for some of the European economies.