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UK economy News - Monday 24th August 2009

Political fallout set to hit Scottish economy

Political fallout set to hit Scottish economy

Despite attempts today by the SNP to try and defuse the Lockerbie bomber issue it seems as though various US threats to boycott Scottish goods and Scottish services are to go ahead. Even though many people believed the campaign against Scotland, after the freeing of the Lockerbie bomber, would quieten down and become something of a non-event, the political fury in the US is still building, days after the event. So what next?

It seems that many US politicians are currying favour with US voters and appear to have grasped the mood of the US people perfectly. Even Pres Obama has been vocal in his criticism of the Scottish government and nobody has yet questioned various moves to boycott Scotland. The problem for Scotland, as opposed to the wider UK economy, is the fact that Scotland is a very small economy and dominated by a small number of sectors. If the ongoing campaigns attract significant attention in the US this could have a massive impact upon areas such as the whiskey industry which is vital to the Scottish economy.

Do not be surprised to see the SNP and the UK government attempting to build bridges over the coming days and weeks as the magnitude of the decision to free the Lockerbie bomber on compassionate grounds continues to hit home.

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