Optimistic Outlook for Scotland’s Economy

Scotland’s economy could recover this year, but businesses are still hampered by uncertainty, experts have said. The Fraser of Allander Institute is forecasting a 1.2% increase in Scottish GDP in 2018 and 1.3% growth in 2019, BBC reported. The figures are more optimistic than the government’s official forecaster, the Scottish Fiscal Commission. Researchers cited a strengthening oil and gas sector and robust global economy, but warned Brexit remained the greatest risk to economic recovery. A “pickup” in household and business confidence was also a key factor in the report’s optimistic assessment, researchers said. However, the University of Strathclyde institute warned that disruption to the economy from severe winter weather in March would likely contribute to weaker growth in the first few months of 2018. John Macintosh, tax partner at Deloitte, said: “There are some encouraging signs that Scotland’s economy is improving and will perform better this year than last year.  “Some of Scotland’s exports, particularly food and drink, are showing strong growth and sentiment in the oil and gas sector, which is emerging from a hugely challenging time, has returned to its highest level since spring 2013.”