Figures show strong financial services sector

Continued strong growth reported as Scotland marks Global Financial Services Week

News, 27 May 2008

Financial services is one of the fastest growing sectors of the Scottish economy, and now contributes around £7 billion to Scottish Gross Domestic Product.

The Financial Services Strategy annual report, published today, shows that financial services have recorded continued growth and attracted new business from across the world through a raised international profile.

Over the period 1998-2007, GDP in Scotland's financial services industry has grown by 96%, compared with 22% in the economy as a whole, and 84% across UK financial services. Life and pensions accounts for 19% of all GB employment in that sector. Exports in 2006 rose 7.5% to £1.1 billion, or 6% of the Scottish total.

"Critical contribution" to growth

Speaking at a business breakfast in Edinburgh to mark Global Financial Services Week, Cabinet Finance Secretary John Swinney said the event came at a time when Scotland's economy was in good shape in the face of challenging global conditions.

"The Scottish economy is expected to grow this year, but predictions show at a more subdued rate than in the past few years.

"That's why Scotland's financial services industry, worth around £7 billion, will make a critical contribution to increasing sustainable economic growth. With a skilled workforce, strong expertise in banking and insurance and world class companies located and growing in Scotland, we will do all we can in collaboration with the industry to ensure financial services in Scotland maintains its excellent reputation."

"Global Financial Services Week will strengthen our standing as a leading centre of the international financial services industry and brings world attention to all that Scotland has to offer."

Showcase event

Global Financial Services Week will showcase the strength and depth of the industry in Scotland to the rest of the UK and international markets, and provide a forum for discussion about the future of financial services.

John Campbell, deputy chair of FiSAB (the Financial Services Advisory Board) and chairman of Scottish Financial Enterprise said:

"The financial services industry is a vital part of the economy of Scotland. Events throughout Global Financial Services Week, and the range and calibre of the speakers at the conference, underline the diversity of the industry - both in terms of scale and in operation.

"While we have a long history and an impressive record, we are acutely aware of the need to continue to address international markets and to respond to challenges in the environment."