Comment: Need to do more than beat drum for exports

Just yesterday, the International Monetary Fund (IMF) warned that “restoring growth momentum and rebalancing the economy is vital” and that “rebalancing necessitates a transformation to a high-investment and more export-oriented economy”.

Such grand proclamations all sound a bit obvious, as well as playing into the UK government’s existing policies when many had been expecting the IMF to deliver a sterner scolding. The coalition government has been banging this particular drum for years and it is the same beat to which the CBI, the Institute of Directors, the British Chambers of Commerce et al have been adding their cymbals crashes, emphasising the need to get goods out the door and on to the boats – and hopefully not to just to Europe, traditionally our largest trading partner, but where demand is still stagnant.

Is it enough to simply make a  clamour to get the makers marching into regions of the world where  demand is growing?

The diligent army of Bank of England agents yesterday weighed in with their view on how UK companies could hit new markets. The collapse in sterling has so far not made the impact it should, they nod sorrowfully. Growth among exporters has only been modest in the past year, with those surveyed suggesting they would still be modest this year. Hardly the building of a solid crescendo.

Lack of demand is the stumbling block, which is down to the well-known problems in the eurozone and the slow shift into growing US markets. That still perennial problem – lack of finance – was a particular bugbear for small to medium sized firms.

Looking around us, it is possible to feel gloomy about the difficulty of rebalancing what for decades has been an economic lifestyle fuelled by borrowing, house price bubbles and booming service industries.

In Scotland there are a handful of success stories – the traditional suspects such as whisky, tartan and,  increasingly, salmon.

Or in our engineering services – Weir Group, Wood Group, and the various business under the Clyde Blowers umbrella.

But then there are the unlikely ones – the niches – that can surprise you. Glasgow-based Thomas Taylor – nearing 200 years in the business – has laid claim to becoming the world’s leading supplier of lawn bowls and accessories, exporting to markets in Australia and Israel.

It recently secured a funding package from the Bank of Scotland and has been working with sports scientists at the University of Strathclyde to develop new innovative products. A drum roll, please.

Carney needs a trick up sleeve to turn the MPC

Minutes from the Bank of England’s May meeting yesterday showed members of the monetary policy committee (MPC) split on whether there should be more quantitative easing, or not. Outgoing governor Sir Mervyn King thought an extra £25 billion wouldn’t go amiss to help what he believes is a nascent economic recovery. But since it was his last time casting his vote, every one was asking – what will the new governor Mark Carney do when he comes in July?

Carney, who this week hailed the “bold” QE-fuelled growth in Japan’s economy, is likely to vote the same way as Merve, most reckon. Which means another stalemate unless he’s got a better trick up his sleeve.