Brexit uncertainty impacting the economy
Economic output contracts.
Following a period of sustained economic growth, Scotland’s gross domestic product (GDP) has contracted by 0.3% in the second quarter – the three months after the original EU departure date at the end of March.
This contraction follows relatively robust growth (0.6%) in the first quarter in 2019, which was supported by a notable acceleration in manufacturing sector output as firms stockpiled and moved to complete orders prior to the original Brexit deadline.
Compared to the same quarter last year, Scotland’s GDP grew by 0.7%. Since the start of 2019, growth has been in line with the UK.
Economy Secretary Derek Mackay yesterday said:
“Given the repeated warnings from business organisations and the contraction across the UK in the same quarter, it is unsurprising, but deeply frustrating that we are now seeing the Brexit impact on the Scottish economy. The responsibility for this contraction lies entirely with the UK Government.
“There can now be no doubt that any form of Brexit will damage our economy and a ‘no deal’ Brexit would be disastrous for Scotland and could push the country into recession.
“Scotland did not vote for Brexit, but our economy is paying the price for it and we are likely to see continued volatility as businesses try and prepare for the looming October Brexit deadline and the increasing thread of a ‘no-deal’ exit.
“We are already taking steps to protect jobs and our economy from Brexit but not every impact can be mitigated. We will continue to stand firm against efforts to take us out of the EU against our will.”
Contraction in sectors associated with Brexit Stockpiling:
In quarter 1, two sub-sectors of manufacturing (food and drink and pharmaceutical and related industries) accounted for more than half of total growth. Surveys attributed this to stockpiling.
This quarter the same two sectors accounted for the whole 0.3% contraction.
Latest News from
Health Protection (Coronavirus, Restrictions) (Aberdeen City) Regulations 202006/08/2020 15:05:00
Regulations requiring the closure of businesses selling food or drink for consumption on the premises in the local authority area of Aberdeen City.
Local restrictions introduced in Aberdeen06/08/2020 12:05:00
Changes follow new COVID-19 cases identified in the community.
A blueprint for Scotland's wellbeing economy: Scottish Government response06/08/2020 10:05:00
The Scottish Government’s response to the Advisory Group on Economic Recovery report “Towards a Robust, Resilient Wellbeing Economy for Scotland: Report of the Advisory Group on Economic Recovery.”
Rebuilding better06/08/2020 08:05:00
Targeted measures to build a stronger, fairer and greener economic future for Scotland in the wake of coronavirus (COVID-19) have been announced by the Scottish Government.
Addressing the labour market emergency: Scottish Government response05/08/2020 16:33:00
Across four themes, this report sets out the Scottish Government’s response to the recommendations made by The Enterprise and Skills Strategic Board sub-group for immediate action to mitigate rising levels of unemployment across Scotland due to the impact of COVID-19.
University places05/08/2020 15:05:00
The number of Scottish domiciled students being offered a place at Scottish universities is the second highest on record, up 1% to 28,240.
Treating cystic fibrosis05/08/2020 12:05:00
A new triple therapy treatment will be available to cystic fibrosis patients on the NHS, following an agreement between the Scottish Government, NHS Scotland and the pharmaceutical company.
Recruitment rates for future medics05/08/2020 10:05:00
Latest recruitment figures show the number of speciality medical training posts which have been filled in Scotland is at its highest level for eight years.
Results Day04/08/2020 15:05:00
Deputy First Minister John Swinney has congratulated all learners who have today received their results.