SCOTTISH industrial production rose more than 6% last year, achieving its strongest growth since 1974, according to the latest Scottish Office figures.
The rising price of North Sea oil, which peaked at more than $20 a barrel in November, and strong growth in the electronics sector helped Scotland out-perform the rest of the UK for the sixth year in a row.
However, a fall in the oil price this year to around $14 a barrel is likely to weigh on the 1998 data when it is published.
The Index of Production and Construction for Scotland rose 0.8% in the fourth quarter, driven by strong growth in the manufacturing sector, and 6.2% over 1997 as a whole.
The index for the UK as a whole declined 0.5% in the fourth quarter, although it advanced by a modest 1.6% over the full year.
The booming electronics sector enabled Scotland's manufacturing industry to achieve 1.7% growth in the fourth quarter. Mechanical engineering, transport equipment, and food and drink also registered a positive performance.
But the influence of electronics was overwhelming. When the computer-based industries of Silicon Glen are taken out of the equation, the statistics show that Scottish manufacturing output has been on a declining path since 1990 and has under-performed the rest of the UK since 1993.
The construction sector in Scotland grew only 1.4% last year and declined 0.3% in the final quarter.
But Scottish Industry Mini-ster Brian Wilson said that the overall picture painted by the data was positive.
''This represents a very impressive performance by Scottish industry given strong competition and difficult international trading conditions. I am also impressed by evidence of stronger growth in employment in Scotland,'' he said.
Wilson said that despite problems created by the high level of the pound, the outlook for Scotland's economy remained ''very favourable''.
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