Infrastructure Investment Boosts Scottish Growth
World Economy

Infrastructure Investment Boosts Scottish Growth

Scottish output growth is being fuelled by a combination of capital investment–particularly infrastructure spending–and consumer spending, according to the latest Economic Commentary from the University of Strathclyde’s Fraser of Allander Institute.

It outlined forecast for GDP growth at 2.5% in 2015, 2.3% in 2016, and 2.3% in 2017; a slight downward revision from its March 2015 forecasts, NewsNow reported.
However, threats to recovery remain, the report sponsored by PwC warned. These include the UK government continuing, or even tightening, planned austerity measures in the forthcoming budget on July 8, and the growing threat of a Greek exit from the euro with the risk of contagion to other economies including Scotland.
Brian Ashcroft, Emeritus Professor of Economics at the University of Strathclyde, said: “In his forthcoming budget, it is crucial that the chancellor takes action to minimize the threats to the recovery by encouraging productivity and real-wage enhancing investment. He should also consider increased incentives to exporters and, at a minimum, a slowing in the pace of his fiscal consolidation plans.”
The Institute also warns that sustainable recovery is being threatened by a combination of unbalanced growth that relies unduly on household spending that depends mainly on rising and potentially unsustainable personal debt, and the UK’s overall weak trade performance.
The report which was published Thursday, outlines a number of positive influences on the Scottish economy that are collectively stimulating demand for Scottish goods and services.
Infrastructure spending, with projects such as the Forth Road Bridge and M8 completion, are complemented by a steady stream of foreign direct investments, with over 80 inward investment projects coming to Scotland in 2014.


Short URL : http://goo.gl/6EPpgG

You can also read ...

Even though the US tariffs on their own may have a limited impact, global economic growth will slow should US trigger a trade war with  China or the European Union.
The volume of global trade grew faster than the world economy...
OECD Finds No Consensus on Interim E-Commerce Taxes
The Organization for Economic Cooperation and Development’s...
Since China’s entry into the World Trade Organization in 2001, it has become the most formidable  economic competitor the United States had even seen.
The US national debt exceeded $21 trillion for the first time...
S. Arabia Among World’s Worst Performing Property Markets
Saudi Arabia’s real estate market continued to be one of the...
Greece Looking Economically Vibrant on Road to Recovery
It’s nearly springtime in Athens: street trees are heavy with...
Merkel Says Trying to Boost Domestic Demand
Germany is trying to stimulate domestic demand to offset...
Gaza growth fell from 8% in 2016  to a mere 0.5% in 2017.
Gaza has seen conditions steadily deteriorate over the last...
ECB wants to keep headline inflation below,  but close to 2% year-on-year.
Eurozone consumer prices grew less than expected in February...