Despite concern that Scotland’s independence plans could affect the country’s long-term appeal to foreign investors, business activity increased in Scotland during the last twelve months. Business services Ernst & Young has reported that Scotland saw a fifteen-year high in large-scale corporate investment activity during 2012.
With 76 major projects launched in Scotland over the past twelve months, the year marked a milestone in business for the country. Scotland came in second place for total foreign investment in major projects during 2012, training behind London to claim its prominent spot at the top of the charts.
Supporters of Scottish independence claim that the increased investment indicates a ‘can do’ attitude towards business in Scotland. John Swinney, the country’s Minister of Finance, claimed that the increase in business activity indicates that Scotland can operate independently without concern about international business activity.
Despite the increase in international investment in Scotland, job figures reported a slight decrease in job growth. Large corporate investments resulted in 4,867 jobs in 2012 – an 18 percent decrease from the level of job growth the country experienced during the previous twelve months of economic activity.
Scotland has relied heavily on foreign investment from United States firms over the past decade. The recent increase in international investment signals a downturn in the Unites States’ activity in Scotland. Despite this, Scotland still lags behind other parts of the United Kingdom in total investment from high-growth Asian markets.
Countries such as China and India – both major manufacturing hubs – spend most of their UK investment budget in England, the report claims. Despite this, the statistics indicate a clear increase in Scottish investments – one that could boost confidence in the prospects of an independent economy built on foreign investment.
