Scotland’s economy remains resilient despite UK's EU exit uncertainty
Despite this success, uncertainty around the UK’s EU Exit has impacted business investment in Scotland.
The State of the Economy report, published by Scotland’s Chief Economist Gary Gillespie, says companies are pausing key investment programmes to focus on immediate Brexit-related spending - including stockpiling, warehousing, logistics, supply chains and alternative trade options.
Output growth has strengthened at the start of 2019 and the labour market is delivering record levels of performance.
Brexit uncertainty continues to impact business investment in Scotland, posing a significant risk for future output growth and productivity.
Consumer sentiment in Scotland continued to weaken at the start of 2019 with households increasingly concerned about the economic outlook Independent forecasts for the Scottish economy estimate growth of between 0.8 and 1.2 per cent in 2019, assuming a smooth UK EU Exit transition, with No Deal remaining a key risk which could push the Scottish economy into recession. ■