Economics 'key in Scottish independence debate'

Economics will play a central role in whether or not Scotland attains its independence from the rest of the UK, according to the Financial Times.

Following comments from UK chancellor George Osborne questioning what currency an independent Scotland would utilise, the news provider points out the Scottish and UK economies have followed similar paths during the recession.

Although the recession was not as deep in Scotland, the recovery has also been slower, meaning that both economies currently produce four per cent less than they did at the end of 2007.

It was also noted that Scotland's economy is very small, representing just eight per cent of the UK total, while it has a strong dependence on oil, which makes up 13 per cent of output.

Anne Sibert, professor of economics at Birkbeck, told the publication: "A big country has some insurance if one industry or one area of the country runs into problems, you can have transfers from the other areas.

"But if you mainly produce one thing, if you’re located in one small place, you don’t have so much insurance."

The Scottish government intends to hold a referendum on whether the country should become independent in 2014.

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