• a| a| a| a|
• | 22 May 2012
• | what's new
• | a to z
• | FAQs / how do i?
• | contact us
• | Council Departments

• CnES Web Home
• / Business
• / Regeneration
• / Local economy - reports and forecasts

• CnES Web

Factfile - Economy

Regional Accounts 2003

4.  Core Regional Analysis

4.1     Introduction

4.1.1        This chapter presents the main findings from the balanced 2003 SAM, highlighting changes that have taken place in the Western Isles since the previous 1997 regional accounts study. In addition to standard performance indicators such as Gross Regional Domestic Product in the base year, the SAM provides a basis for analysing the relative importance of different sectors in the economy, as well as the pattern of trade, household income and expenditure patterns, and transfer payments.

4.2     Gross Regional Domestic Product and Expenditure

4.2.1             Gross Regional Domestic Product (GRDP) is a measure of the total economic activity within a region, and corresponds to GDP at national level. It represents the sum of all value added earned by the production of goods and services within a certain territory over a certain period of time, where value added is defined as income less intermediate costs. Per capita GRDP is often used as an indicator of economic welfare of a region, with comparisons of GRDP across regions indicating different living standards. Over time, changes in GRDP will indicate the extent to which an economy has been either growing or declining although, unless expressed in constant prices, changes also reflect the effects of inflation. GDP is measured in the SAM at basic prices (that is net of taxes on expenditure less subsidies) it is thus equivalent to the Gross Value Added measures of economic performance produced on a regional basis by the ONS. 

4.2.2             Table 4.1 presents the estimation of the Western Isles GRDP derived from the 2003 regional SAM. Two approaches to measuring GRDP are given: the expenditure measure and the income measure. In accordance with the accounting identities inherent to the economy, both approaches produce the same value for GRDP, £263 million (£263m). Since the total resident population of the Western Isles on 30 June 2003 was 26,100 (General Register Office for Scotland, 2005), GDRP per head in that year is estimated at £10,078. 

Table 4.1Western Isles Gross Regional Domestic Product, 2003

Western Isles Gross Regional Domestic Product, 2003

Expenditure Approach	Source in SAM	£’000
Household expenditure	Note 1	200,349
+ Local government expenditure	Note 2	86,588
+ Central government expenditure	Note 3	96,135
+ Gross fixed capital formation	column sum	34,179
+ Change in the value of stocks	column sum	-22
+ Tourist expenditure	column sum	41,084
+ Exports	Note 4	133,910
- Imports	sum of row totals	297,308
- Net taxes & subsidies on expenditure (indirect taxes)		31,883
= GRDP at factor cost		263,032
Income Approach		£’000
Income from employment	row sum	218,315
+ gross profits and other trading income	row sum	44,717
= GRDP at factor cost		263,032
= GRDP per head (£)	(population 26, 100)	10,078

 

Notes:

1.       Household expenditure on Western Isles goods and services (£81,937k) plus expenditure on imports (£100,089k) plus indirect (expenditure) taxes (£18,323).

2.       Local government income (£91,181k) less internal transfers (£1,238k) and surplus (in capital account) (£3,355k).

3.       Central government transfers for public services (£81,864k) plus expenditure on Western Isles goods and services (£9,679k) plus expenditure on imports (£4,593k).

4.       Sum of column totals for (all) exports (£141,662) less transfers to households from out-with the region (£7,752k)

 

4.2.3             Table 4.2 shows how the total and per head estimates of Western Isles GRDP in 2003 compares with those found in other regions. Western Isles GRDP per head in 2003 is estimated at 66% of the equivalent UK GDP per head of £16,383 and 78% of the EU-25 average. It is also lower than that estimated for the whole Highlands and Islands area from the most recent ONS statistics.

Table 4.2         Western Isles GRDP compared with estimates for other regions

Western Isles GRDP compared with estimates for other regions

Region	Source	Year of data	GRDP/ GRVA (£m)	GRDP/GVA per head (£)	GDP/ GVA per head Indices (UK=100)
Western Isles	2003 Regional SAM	2003	263	10,078	66
Highlands and Islands	ONS, 2004	2003	3,874	10,524	69
Scotland	ONS, 2004	2003	77,929	15,409	96
UK	ONS, 2004	2003	976,148	16,383	100
EU - 25	Eurostat *	2003	-	-	84

 Notes:  EU-25 Index is based on an estimated value of UK GDP per capita in PPS.  The GVA per head indices published by the ONS relate the regional estimates to UK GVA after having allowed for the compensation of employees and gross operating surplus which cannot be assigned to regions. Thus the indices are (slightly) higher than a comparison of the GVA values would suggest. The Western Isles index is calculated relative to the Highlands and Islands index value on the basis that no additional adjustment is required at this geographical scale.

4.2.4             Table 4.3 compares the estimated GRDP from the 2003 SAM to the most recent estimates of regional GVA produced by the ONS which relates to calendar year 2002.  The SAM estimate is slightly (2%) lower that the updated the ONS estimate for 2003[1] but the two are much closer than was the case for the previous 1997 study[2].

Table 4.3         Alternative estimates of Western Isles GRDP

Alternative estimates of Western Isles GRDP

Source	Year	GRDP (£m)	GDP per head (£)
Regional SAM  (this report)	2003	263	10,078
Regional Gross Value Added (ONS, 2004)	2002	261	9,961
Inflated ONS 2004 estimate	2003	269	10,250

 

4.2.5             In relation to changes over time, the estimate of GRDP from the 2003 SAM is higher than that from the 1997 study of the region as shown in Table 4.4. Allowing for price inflation equal to that experienced in the UK as a whole[3], the updated 1997 study would estimate a Western Isles GRDP of £256.5m, compared to the £263m figure found in the current study. However the implied real growth in the economy over the six year period of 2.5% is considerably less than that experienced in the UK as a whole.

Table 4.4        Composition of Western Isles GRDP, 1997 and 2003

Composition of Western Isles GRDP, 1997 and 2003

	1997 regional accounts (£’000)	Updated to 2003 at UK rates  (£’000)	Shares of GRDP (%)	2003 regional accounts (£’000)	Shares of GRDP (%)
Household expenditure	167770	194,721	75.9	200,349	76.2
+ Local government expenditure	68149	79,097	30.8	86,588	32.9
+ Central govt. expenditure	50152	58,209	22.7	96,135	36.5
+ Gross fixed capital formation	23187	26,912	10.5	34,179	13.0
+ Change in the value of stocks	-67	-78	0.0	-22	0.0
+ Tourist expenditure	31715	36,810	14.3	41,084	15.6
+ Exports	122222	141,856	55.3	133,910	50.9
- Imports	220211	255,587	99.6	297,308	113.0
- Net taxes on expenditure	21893	25,410	9.9	31,883	12.1
= GRDP	221023	256,529	100.0	263,032	100.0

 

4.2.6             Table 4.4 also shows how the components of GRDP have changed between 1997 and 2003. The previous regional accounts study highlighted the growing significance of tourism for the economy and Table 4.4 confirms that this trend has been continued with tourism contributing 15.6% to GRDP as compared to 14.3% in 1997 and only 4% in 1988/89. The economy appears to have become more reliant on local and central government funded activity with the latter increasing significantly from its 1997 level. Dependence on imports has also increased suggesting the economy has become more open to economic influences outside its territory.

4.2.7             Table 4.5 focuses on real changes in per capita GRDP while, for comparative purposes, Table 4.6 shows the growth rates observed in other regions. The relatively strong growth rate in per capita GRDP in the region is primarily due to a fall in population.  If the population had remained at 1997 levels (28,240), per capita GRDP would hardly have changed at all in real terms.  However, given the population decline, the growth rate is far better than that observed in Orkney or the Shetlands and in the Highlands and Islands as a whole although it remains lower than growth rates in the UK over the period.

Table 4.5 Changes in per capita GRDP, 1997 and 2003

Changes in per capita GRDP, 1997 and 2003

	1997 regional accounts (£’000)	Updated to 2003 at UK rates (£’000)	2003 regional accounts (£’000)	% change in real terms
Total GRDP (£’000)	221,023	256,529	263,032	2.54
Population base (no.)	28,240	-	26,100	-
GRDP per head (£)	7,827	9,084	10,078	10.94

 

Table 4.6 The Western Isles (and Other Regions) Changes in Gross Value Added (GVA) per head, 1997 to 2003

Changes in Gross Value Added (GVA) per head, 1997 to 2003

	GVA per head at current basic prices		% change in real terms
	1997	2003
Western Isles (2003)	7,827	10,078	10.94
Orkney Islands (2002)	10,966	10,716	-13.37
Shetland Islands (2002)	11,701	13,197	-0.01
Highlands and Islands	8,743	10,524	3.71
Scotland	11,980	15,409	10.82
UK	12,339	16,383	14.40

Source:  Regional Gross Value Added, ONS, December 2004.

 

 

4.2.8 An alternative indicator of economic welfare (or standard of living) in a region is the Gross Regional Domestic Expenditure (GRDE) measure. Whilst GRDP focuses on the value of economic activity within the region, GRDE is a measure of the value of expenditure of domestic residents, regardless of the source of goods and services. Table 4.7 indicates that the 2003 regional accounts estimate of total GRDE is £385.3m or £14,764 per capita. This is substantially higher than per capita GRDP reflecting the fact that there is a substantial trade deficit.

Table 4.7 Western Isles Gross Regional Domestic Expenditure, 2003

 

4.2.9 Table 4.8 shows how the various different contributions to GRDE have changed between 1997 and 2003. As noted above, imports have grown in importance to the economy and exports have fallen.  Income from tourist has increased by nearly 12% in real terms. However, as in the case of per capita GDRP, one of the major contributory factors accounting for the 25% growth rate of per capita GRDE over the period is the fall in population in the region.

 

Table 4.8 Changes in the contributions to GRDE, 1997 and 2003

Changes in the contributions to GRDE, 1997 and 2003

	1997 regional accounts (£’000)	Updated to 2003 at UK rates (£’000)	2003 regional accounts (£’000)	% change in real terms
GDRP	221,023	256,529	263,032	2.53
+ Imports	220,211	255,587	297,308	16.32
- Exports	122,222	141,856	133,910	-5.60
- Tourist expenditure	31,715	36,810	41,084	11.61
GDRE	287,297	333,450	385,345	15.56
Population	28,240	-	26,100	-
GDRE per head	£10,173	£11,807	£14,764	25.04

Note: Updated per capita GDRE (second column) is the 1997 value adjusted to allow for inflation in the economy.  It is based on the assumption that the population remains at the 1997 level which in the previous study was taken as 28,240. 

4.3     Sectoral Analysis

4.3.1             Table 4.9 shows the sectoral contributions to Western Isles employment, value-added and output in 2003. In terms of estimated FTE employment, the five most important sectors were: Other Services (private), Construction, Distribution (i.e. retailing and most wholesaling), Health and Education. Together, these five sectors accounted for 50.5% of total Western Isles employment in terms of FTE jobs. The five most important sectors in terms of generating value added (i.e. earnings in terms of wages, profits, etc.) were Distribution (12.5% of total Western Isles GRDP), Other Public Services (10.6%), Education, Health and Other Private services. In aggregate these five sectors contributed 47.3% to total Western Isles value added.  This is less than the top five sectors accounted for in 1997, which suggests the economy has become more diverse in structure.

4.3.2             The changing production structure of the economy is illustrated in Table 4.10 which compares the employment contribution of each sector in 1997 with that found in 2003 and the value added composition for 1997 and 2003. To facilitate comparison, the number of sectors is reduced to thirteen.

4.3.3             The substantial estimated drop in Agriculture, Fishing and Fish Farming employment is due in part to an overestimate of self employment in agriculture in the 1997 study.[4]  However it also reflects the downturn that has occurred in the aquaculture sector since the end of the 1990s. Apart from this, there are various other important changes in employment structure in the region (see for example, transport), the magnitude of which is surprising given the relatively short period between studies.

Table 4.9         Sectoral contributions to employment, value added and output,

Western Isles 2003

Sectoral contributions to employment, value added and output

	Sector	Employment	%	Value Added	%	Output	%
		(FTE jobs)		(£’000)		(£’000)
1	Agriculture	164	1.7	1080	0.4	10998	2.2
2,3,5	Sea fishing	339	3.4	3135	1.2	9218	1.8
4	Fish farming	287	2.9	19541	7.4	30888	6.1
6	Electricity, gas, water	104	1.1	1720	0.7	4924	1.0
7	Extraction (of ores, etc.)	123	1.2	2793	1.1	3978	0.8
8	Textiles	320	3.2	3464	1.3	8622	1.7
9	Pottery and jewellery	26	0.3	423	0.2	882	0.2
10	Food and drink manufacturing	14	0.1	174	0.1	450	0.1
11	Fish processing, wholesaling, etc.	276	2.8	12360	4.7	19908	3.9
12	Other manufacturing	338	3.4	4725	1.8	8415	1.7
13	Construction	1183	11.9	18641	7.1	39916	7.8
14	Distribution	1092	11.0	32784	12.5	55235	10.8
15	Hotels	242	2.4	5751	2.2	11369	2.2
16	Other accommodation	36	0.4	428	0.2	1910	0.4
17	Catering	228	2.3	5470	2.1	6467	1.3
18	Land transport	293	3.0	17002	6.5	25098	4.9
19	Air transport	78	0.8	3350	1.3	6258	1.2
20	Sea transport	297	3.0	8101	3.1	14730	2.9
21	IT services & telecommunications	204	2.1	9037	3.4	13223	2.6
22	Banking and insurance	136	1.4	3384	1.3	13499	2.6
23	Media	45	0.5	965	0.4	2385	0.5
24	Education	741	7.5	22584	8.6	45369	8.9
25	Health	797	8.0	21116	8.0	27287	5.4
27	Other public services	689	7.0	27798	10.6	120933	23.7
28	Other services	1194	12.0	20148	7.7	20696	4.1
29	Public administration	660	6.7	7169	2.7	7169	1.4
	Total	9908	100	263127	100	509826	100

Note: Total Value Added includes payments to central government employees residing in the Western Isles (£9,984 thousand).

Note:  Figures may not exactly add to totals due to rounding.

Table 4.10       Sectoral contribution employment and value-added, Western Isles,

1997 and 2003

Sectoral contribution employment and value-added, Western Isles

	% employment		% value added
Sector	1997	2003	1997	2003
Agriculture, Fishing and Fish Farming	16.8	8.0	12.5	9.0
Electricity, gas, water	1.2	1.1	1.0	0.7
Extraction (of ores, etc.)	1.3	1.2	1.8	1.1
Textiles, pottery and jewellery	4.7	3.5	1.8	1.5
Food and fish processing	2.9	2.9	3.6	4.8
Other manufacturing	3.4	3.4	2.0	1.8
Construction	8.9	11.9	8.2	7.1
Distribution	11.6	11.0	11.7	12.5
Hotels and catering	6.5	5.1	3.7	4.4
Transport	3.6	6.7	7.4	10.8
Banking and insurance	1.8	1.4	1.6	1.3
Private services	9.1	14.6	8.9	11.5
Public services	28.2	29.1	35.8	29.9
Total	100	100.0	100.0	100.0

Note:  Figures may not exactly add to totals due to rounding.

 

4.3.4             The absence of oil-related construction businesses in the 2003 SAM helps to explain changes in the position of the construction sector (showing an increased percentage of employment but decreased value added).  Such businesses tended to pay higher wages than other construction sector businesses thus inflating the value added contributions of the sector[5]. 

4.3.5             Figures 4.1 and 4.2 show, in graphical terms the importance of difference sectors to employment and value-added (based on columns 2 and 4 of Table 4.7).  Although similar, there are some differences between the pie charts reflecting differences in the wages and profit levels in each sector in 2003.

4.3.6        Based on the balanced 2003 employment matrix, Figure 4.3 shows how the occupational structure of employment varies between sectors. The textiles sector is shown to have the greatest reliance on skilled trades. Pottery, jewellery and agriculture have the greatest proportion of the workforce as mangers (reflecting the dominance of self employment in these sectors). The public sectors particularly, all have high proportions of employees in SOC classes 2 and to 3 (professionals and associated professional).

Figure 4.1 Sectoral employment contributions, Western Isles 2003

Figure 4.2 Sectoral value added contributions, Western Isles, 2003

Figure 4.3 Employment type by sector, 2003

4.4 The Household Sector

Income

 

4.4.1             The total income of the three household groups in the 2003 SAM is estimated to be £305.042m. The value of total household income differs from the total value-added payments from local businesses for two reasons. First, the recipients of factor earnings from production activity are not necessarily households who reside in the area. For example, some earnings from employment are paid to non-Western Isles residents; gross profits may flow from the region, and employers’ contributions to National Insurance are paid to central government. Secondly, households may receive income from sources other than local industries: for example investment income; social security payments and pensions. In the case of the Western Isles, the value of income earned from sources other than local production activities substantially exceeds the value-added payments flowing from the region. As a result the average per capita income in the Western Isles compares more favourably with other regions than per capita GRDP.

4.4.2             Table 4.11 indicates the relative importance of different types of income for Western Isles households. Importantly, the figures shown relate to the income of the household as a whole rather than individuals.

Table 4.11 Sources of income by household type, Western Isles 2003

Sources of income by household type, Western Isles 2003

		Household Type
		Adults, no children (£)	%	Adults with children (£)	%	Retiree households (£)	%	All Western Isles Households (£)	%
Wages and salaries		18,865	84	23,411	78	167	1	15,215	70
Self employment		813	4	4,200	14	617	5	1,665	8
Investments		128	1	118	0	650	5	261	1
Annuities and Pensions		1,110	5	94	0	9,888	84	3,122	14
Social Sec. benefits		1,258	6	2,177	7	512	4	1,309	6
Other sources		325	1	0	0	0	0	154	1
Total		22,500	100	30,000	100	11,833	100	21,726	100

Source: Western Isles Household Survey and Family Spending (ONS, 2005)

Note: Figures may not exactly add to totals due to rounding.

4.4.3             As anticipated there are large differences in the sources of income for each of the three household types. By far the most important source of income for retiree households is pension income (84%) while wages and salaries constitute the most important income source for both of the other household types. Households with children are more likely (on average) to rely on income from self-employment than households with no dependants.

4.4.4             Table 4.12 shows how the income sources of Western Isles households compares to that in Scotland and the UK.  The overall patterns are relatively similar apart from relative dependence on pension and social security income.  The former appears to be relatively more important in the Western Isles, reflecting the ageing population structure of the region.  It is possible however that social security income was under-reported due to the sensitivity of such payments.

Table 4.12       Comparison of income sources by region, 2003

Comparison of income sources by region, 2003

		All Households Western Isles (£)	%	Scotland (£)	%	UK (£)	%
Wages and salaries		15,215	70	17,683	69	19,420	68
Self employment		1,665	8	1,299	5	2,328	8
Investments		261	1	510	2	852	3
Annuities and Pensions		3,122	14	1,835	7	2,016	7
Social Sec. benefits		1,309	6	3,644	14	3,492	12
Other sources		154	1	510	2	284	1
Total		21,726	100	25,480	100	28,392	100

Source: Western Isles Household Survey and Family Spending (ONS, 2005)

Note: Figures may not exactly add to totals due to rounding.

4.4.5             Table 4.13 indicates that the relative importance of the different sources of household income within the Western Isles has changed quite considerably between 1997 and 2003.  In part this is due to changes in the population structure, with relatively more households with no dependents.  However, it does suggest that self employment income is less important than previously.  The implications of changes in the demographic structure of the region for multiplier and impact analyses are considered in Chapter 6 of the report.

 

Table 4.13       Comparison of income sources of Western Isles

                        Households, 1997 and 2003

 

		Percentage of total income All Western Isles households
		1997	2003
Wages and salaries		54	70
Self employment		18	8
Investments		3	1
Annuities and pensions		17	14
Social security benefits		7	6
Other sources		1	1
Total		100	100

Source:  Western Isles Household Survey and Roberts et al., 1999.

Expenditure

4.4.6             Table 4.14 contrasts the level and pattern of weekly expenditure of Western Isles households with that of average Scottish and UK household expenditure patterns. A much higher percentage of expenditure is spent on necessities; in particular food and drink, heating, fuel and light: while far less is spent by Western Isles households on recreation and cultural activities. The pattern of relative prices faced by households in the Western Isles is different from that faced by their mainland counterparts (Mackay Consultants, 1998), which partly explains the differential patterns of expenditure in the table although different consumption preferences may also be an important factor.   The table shows clearly how the different types of households within the SAM have very different expenditure patterns, justifying their separate treatment within the accounts. 

 

 

 

Table 4.14       Level and pattern of weekly expenditure (£) by household group, Western Isles 2003

	Household group
Expenditure item	Adults, no children (£)	%	Adults with children (£)	%	Retiree households (£)	%	UK	%
Transport	84.9	23	74.9	19	22.4	11	60.7	15
Recreation and Culture	10.1	3	9.3	2	4.8	2	57.3	14
Food and non alcoholic drink	76.8	21	103.4	26	56.3	26	43.5	10
Housing, fuel and power	44.8	12	63.3	16	52.5	25	39	9
Restaurants and hotels	12.6	3	8.6	2	5.2	2	34.9	8
Misc. goods and services	7.7	2	8.2	2	5.4	3	33.6	8
Household goods and services	23.1	6	23.5	6	17.1	8	31.3	7
Clothing and Footwear	29.9	8	21.9	6	9.9	5	22.7	5
Alcoholic drink and tobacco	10.1	3	11.6	3	4.9	2	11.7	3
Communication	9.9	3	13.4	3	8.2	4	11.2	3
Education	0.0	0	0.0	0	0.0	0	5.2	1
Health	0.1	0	0.0	0	0.9	0	5	1
Other expenditure items	53.1	15	59.1	15	25.0	12	61.9	15
Total	363.1	100	397.1	100	212.8	100	418	100

Source: Western Isles Household Survey and Expenditure and Food Survey, 2003-04. (ONS)

Note: Other expenditure items include mortgage interest payments, council tax and water rates.

Note: Figures may not exactly add to totals due to rounding.

4.5     Trade

4.5.1             As indicated in Table 4.1 on page 26, the estimated value of imports into the region in 2003 was £297.3m. This represents a 16% increase in imports real terms from 1997 levels. In contrast, the value of exports from the Western Isles in 2003 is estimated at £133.9m, a fall in real terms of 5.6% from 1997 levels. Thus the trade deficit of the region has increased in magnitude to £163.4m. Table 4.15 shows each sector’s contribution to the Western Isles balance of trade.

Table 4.15       Sectoral contributions to Western Isles balance of trade, 2003

Sectoral contributions to Western Isles balance of trade

	Sector	Exports	%	Imports	%	Trade Balance (£’000)
		(£’000)		(£’000)
4	Fish farming	30,667	22.9	5,586	1.9	25,081
11	Fish processing, preserve and wholesale	19,620	14.7	1,326	0.4	18,293
18	Land transport	18,579	13.9	4,862	1.6	13,717
13	Construction	24,989	18.7	12,197	4.1	12,791
28	Other services	4,718	3.5	30	0.0	4,688
8	Textiles	6,904	5.2	2,366	0.8	4,537
12	other man	4,583	3.4	2,395	0.8	2,188
21	IT services and telecommunications	2,501	1.9	575	0.2	1,926
23	Media	1,429	1.1	197	0.1	1,232
14	Distribution	16,354	12.2	15,171	5.1	1,183
2,3,5	Sea fishing	1,535	1.1	1,199	0.4	335
9	Pottery and jewellery	390	0.3	299	0.1	91
29	Public admin	0	0	0	0	0
10	food	42	0.0	49	0.0	-7
7	Extraction of ores, etc	0	0.0	85	0.0	-85
16	Other accommodation	0	0.0	129	0.0	-129
17	Catering	0	0.0	435	0.1	-435
19	Air transport	0	0.0	812	0.3	-812
6	Electricity, gas, water	0	0.0	1,656	0.6	-1,656
15	Hotels	383	0.3	2,385	0.8	-2,002
25	Health	0	0.0	4,051	1.4	-4,051
20	Sea transport	0	0.0	4,388	1.5	-4,388
1	Agriculture	1,212	0.9	5,776	1.9	-4,564
22	Banking and Insurance	0	0.0	9,100	3.1	-9,100
24	Education	5	0.0	18,160	6.1	-18,155
27	Other public services	0	0.0	69,919	23.5	-69,919
	Other final demand	-	0	34,070	11.5	-34,070
	Households	-	0	100,089	33.7	-100,089
	Total	133,910	100	297,308	100	-163,398

 

4.5.2             Although down in both absolute and percentage terms from 1997, the fish farming sector contributes most to the overall trade balance, exporting goods valued at £30.7m and importing only £5.6m of in-ports.  Fish processing follows, with exports of £19.6m and imports at £1.3m, i.e. a positive trade balance contribution of £18.3m. The land transport and construction sectors have positive contributions of £13.7m and £12.8m respectively.

4.5.3             As in the 1997 study, by far the largest proportion of the trade deficit is related to household expenditure on imported goods and services, either directly (for example, by Western Isles households purchasing goods and services outside the Western Isles or by mail order etc) or as a result of the high import content of household expenditures made within the Western Isles. Importantly, household expenditure on imports appears to have increased by nearly 21% in real terms.  This suggests the economy’s ability to retain the benefits from any increase in local production activity may be less than in 1997 since increases in local incomes will largely be leaked through household expenditure on non-local goods and services.

4.5.4             Figure 4.4 indicates the extent to which the export performance of sectors in the Western Isles varied between 1997 and 2003. While exports of goods from the private service sector in the region increased by more than 80% in real terms over the period, exports from the sea fish industry in the region are estimated to have fallen by 47% over the same period in real terms.

Figure 4.4       Percentage change in the real value of exports 1997 - 2003 by sector.

 

 

 

 

 

Ag Obair Còmhla Airson Nan Eilean - Working Together For The Western Isles

Comhairle nan Eilean Siar, Sandwick Road, Stornoway, Isle of Lewis, HS1 2BW.
Tel: 0845 6007090 Fax: 01851 705349 e-mail: enquiries@cne-siar.gov.uk
© Comhairle nan Eilean Siar 2007, 2008, 2009, 2010, 2011, 2012

This site uses cookies. To find out more about how we use cookies please see our Privacy Statement.