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Daily Record
Daily Record
Politics
Paul Hutcheon

GDP slump as Scotland is predicted to have 'worst' performing economy in developed world

Scotland’s GDP fell by 2.5% in the first three months of this year - a period that only covers a few weeks of lockdown.

New statistics also estimate that economic activity north of the border slumped by 18.9% last month.

It means the economy is likely to have dipped by nearly a quarter in the first six weeks of lockdown.

It came as senior SNP figure Andrew Wilson predicted Scotland would have the worst performing economy in the developed world.

Fears are rising over the impact of coronavirus after the number of Scots out of work rocketed to 127,000.

A growing number of business figures believe the two metre physical distancing rule - a key part of the drive to eliminate coronavirus - will do lasting economic damage.

In a bulletin published this morning by Nicola Sturgeon’s Government, statistics showed that the construction sector contracted by -3.4% between January and March, and output in the services sector contracted by -2.2%.

Against a backdrop of a 2.5% GDP fall, the Government stated: “During the first quarter as a whole, and in the latest months, output has fallen in nearly every industry sector. The industries with the largest falls in output over the latest two months are those which have been required to close or where working at home is not possible.”

Wilson, a former SNP MSP who chaired his party’s Growth Commission, told the BBC this morning:

“What’s clear to me is the UK is set to be the worst performing economy in the developed world and Scotland’s probably going to be a bit worse because of the nature of our sectors and how the virus has behaved north and south of the border.”

He added: “I think this is a long-haul back, not a V-shaped bounce back at all.

“I think the prospects are that we need a monumental effort - politicians and governments working in collaboration - to get the measures we need in place to rescue businesses.

“Because the outlook for people, for families is bleak.”

Economy Secretary Fiona Hyslop said:

“The coronavirus (COVID-19) pandemic is having an extremely serious impact on the economy right across the UK and  - as these figures demonstrate - Scotland is no exception.

“Ever since the start of this crisis the Scottish Government has been working tirelessly to keep businesses afloat and ensure as many people as possible keep their jobs, and we will continue to do that. So far this has included a tailored package of more than £2.3 billion in business support.

“It is now essential that the Scottish Parliament is granted the additional powers it needs to properly manage the response to the crisis as we move towards recovery.

"It is also the case that the last thing our businesses need is further economic turmoil as a result of a no-deal Brexit.

"That is why we have repeated our calls for the UK Government to agree an extension to the transition period.”

 
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