ECONOMIC ASSESSMENT
ECONOMIC ASSESSMENT
Scotland will qualify for S&P's highest economic assessment, says Standard & Poors
According to the ratings agency Standard & Poors, Scotland’s wealth levels are comparable to those of AAA-listed nations and that, as an independent country - even without North Sea oil - Scotland will qualify for S&P's highest economic assessment.
The report, published in February 2014 prior to the Scottish Independence Referendum in September that year, concluded that the Scottish economy is rich and relatively diversified, with 2014 per capita GDP estimated to be US$47,369, higher than AAA-rated Germany at US$43,855, higher than AA-rated UK at US$41,006 and higher than AA-rated New Zealand at US$ 39,840.
“Even excluding North Sea output and calculating per capita GDP only by looking at onshore income, Scotland would qualify for our highest economic assessment,” said Standard & Poors.
“Higher GDP per capita, in our view, gives a country a broader potential tax and funding base to draw from, which supports creditworthiness.
“We would expect Scotland to benefit from all the attributes of an investment-grade sovereign credit characterised by its wealthy economy (roughly the size of New Zealand's), high-quality human capital, flexible product and labour markets and transparent institutions.”
“Nevertheless, with a GDP (including North Sea oil output) only slightly below that of New Zealand, a developed economy and developed financial system, there is no fundamental reason why Scotland could not successfully float a currency.”
Scotland’s then Deputy First Minister Nicola Sturgeon said: “This is a hugely welcome endorsement of Scotland’s economic strength from an internationally respected and independent agency. Standard & Poor’s have concluded that Scotland’s wealth levels are comparable to those of AAA-listed nations and that ,as an independent country - even without North Sea oil - Scotland will qualify for S&P’s highest economic assessment.
“That is a glowing assessment of the Scottish economy from an impartial source and completely demolishes the scaremongering of the No campaign.
“The anti-independence campaign was already guilty of massive hypocrisy on this issue following the UK’s downgrading from AAA status by leading credit agencies, but this endorsement puts the scare stories to bed and is a massive endorsement of the Scottish Government’s vision of a prosperous, economically successful independent Scotland.”