1.2 This chapter examines the overall performance on the Scottish economic system in the last 12 months inside face of challenging world wide economic problems and considers what development has long been constructed to assembly the two economic advancement targets set out inside Governing administration Financial Strategy.1.3 Excessive lending linked to the US subprime marketplace was the induce for the credit history crunch, which commenced in August 2007. This resulted in substantial losses throughout the banking sector (such as the collapse of Northern Rock) and brought about the reduction inside availability of liquidity inside wholesale capital marketplace. Though initially restricted to the finance sector, the wider impacts on the credit history crunch have already been felt across plenty of unique sectors by means of the reduction inside availability of credit history.
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