The definition of a good economy is difficult as there are many viewpoints. GDP provides an international comparison. In most years, Scottish GDP per head is larger than UK GDP per head when a geographical share of North Sea oil and gas extraction is included. This is higher than the OECD average. When only a population share of oil and gas is considered, the Scottish GDP per head is slightly below the OECD average. But higher than Italy’s, New Zealand’s, Japan’s and South Korea’s.
In most years, Scottish GDP per head is larger than UK GDP per head, when a geographical share of North Sea oil and gas extraction is included. Some may therefore be inclined to report this figure, and even imply that the average Scot is better off than the average person in the UK as a whole. That is a strong claim to make, and one that requires some caveats, which we will discuss further down.
Scotland’s (and the UK’s) GDP per head at purchasing power parity was lower in 2019 than what we would consider some of the traditionally wealthiest countries: the Scandinavian countries, the US, Germany, France or Australia.
Significantly however, when including a geographical share of oil and gas, the number for Scotland was higher than the OECD average (an organisation of mostly rich countries). And even when ‘only’ a population share of oil and gas is considered, the Scottish figure is slightly higher than Italy’s, New Zealand’s, Japan’s and South Korea’s – all countries that many people would consider ‘wealthy’.
Scotland appears to be doing well by one of the most significant measures of economic performance used and recognised internationally.