UK Economics

Nicola Sturgeon to make independent Scotland ‘a THIRD WORLD COUNTRY as economy will FAIL’

SCOTLAND could become a “third world country” within 30 years if it backs Nicola Sturgeon’s calls for independence and continues its “addiction” to public spending, a business expert has claimed.

Douglas McWilliams, president of the Centre for Economics and Business Research (CEBR), said the Scots could find themselves facing Greek-style austerity measures to try and plug a £19bn black hole if a second referendum resulted in the nation breaking away from the UK.Greece is currently on the brink of another financial crisis, with citizens withdrawing more than £2billion in a matter of weeks as they fear the Government will default on more debt payments, leading to the nation leaving the eurozone.

CEBR predicts the gap between Scotland’s tax revenue and public expenditure will become an “unsustainable” 9.4 per cent of GDP by next financial year – more than three times the rest of the UK as a whole.


Business analysts have warned independence would be bad for Scotland

If Scotland were independent now, McWilliams said, that figure would be about 12 per cent of GDP.He told the Sunday Times: “The only practical option would be to cut public spending.

“Because of the negative Keynesian multiplier effects, there would need to be cuts of around 15 per cent of GDP.

“That’s roughly on the scale of what has happened in Greece, which has led to a fall in GDP of a quarter.”

He said Scotland’s addiction to “tax and spend” would put the nation on course to becoming a third world country in three decades.



Nicola Sturgeon will be hoping to reverse the reult of the 2014 referendum

First Minister Ms Sturgeon has said a second referendum on independence is “highly likely”, after Scotland voted 62 per cent to 38 per cent to stay in the EU during the Brexit vote.Lobby group Business for Scotland, which campaigned for independence in the first Scottish referendum of 2014, has predicted the SNP leader will call the vote within a few weeks.

The group’s website says Scotland exports almost £100bn worth of goods across the world, and would provide “the foundation for a wealthy independent country”.

Despite North Sea oil prices tumbling, Business for Scotland maintains revenues will rise again by next year.

A report on the website blames an “artificially high pound” which prevented Scotland exporting to countries with a weaker currency.

It adds: “An independent Scotland, with its own currency, would have enjoyed the opportunity to increase exports to countries outside the United Kingdom, allowing Scotland to achieve its full exporting potential.”

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