Last week, the Scottish economy was predicted to fall into a downside this week following the United Kingdom’s move to push through with the Brexit negotiations and proceedings.
According to the reports, the Scottish economy is slated to enter a new recession this week as it continues to be dragged down deeper by the rest of United Kingdom. Analysts stated that this could change following the release of official GDP figures. The release of the official GDP figures for the first quarter of 2017 will show whether the economy of Scotland will be able to endure a possible recession for this year.
Other reports also supported an impending recession after the gap between Scotland’s economic performance compared to the United Kingdom’s continues to widen although some have stated that a recession in the near future could not be blamed completely on the Brexit proceedings.
Analysis reports show that while the United Kingdom’s exit from the European Union and the weak North Sea oil receipts have impacted the economic status of Scotland, the issues, the state is still facing war worse issues than the reasons mentioned above. The report also showed that Scotland’s economy is currently stuck in a weak growth outlook along with weaning confidence and poor investment and net export figures.
Despite this, some have still predicted that the economy of Scotland might still recover during the year at a 1.2% rate this year, 1.4% next year, and 1.6% in 2019. However, the current state of Scotland’s poor economic performance is still making Scottish officials cautious.
Scottish Conservatives economy representative Dean Lockhart stated that Scotland’s economic capability has been neglected by the Scottish National Party who cannot put the blame on the Brexit. The report concluded that the bad results of the negotiations can be avoided should the United Kingdom government work with the Scottish government and other administrations to keep the two states in the single market and customs union.
Oil Slump Effect On Economy
The recent decline in prices of crude oil has also impacted the Scottish economy according to Scotland program and employability minister Jamie Hepburn. According to the report, the economy of the state is to reach recession and has been performing rather weak compared to the rest of the United Kingdom.
Although the decline in the Scottish economy can be primarily to the poor economic performance and the Brexit negotiations, reports have also revealed that the decline in oil and gas prices also contributed to the economy is on the brink of recession.
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