Scotland’s economic growth will slow this year but remain ahead of the UK average according to UK Economic Outlook report by PricewaterhouseCoopers (PwC).
It says that growth in Scotland is to drop from 1.4% in 2018 to 1.2% in 2019, but this will still be ahead of the 1.1% forecast for the UK. PwC then predicts that GVA growth – gross domestic product with taxes and subsidies taken into account – will increase to 1.6% in 2020. Out of 12 nations and regions analysed by PwC, only the South East of England is predicted to grow at a faster rate than Scotland this year while Scottish growth is expected to match London and the South West.
Lindsay Gardiner, PwC Scotland Regional Chairman, said, “While there are undoubted challenges affecting the UK, it is encouraging to see the Scottish economy among the most resilient parts of the country.
“In spite of the ongoing uncertainty over the UK’s future relationship with Europe, we are continuing to see investment in the private and public sectors, with City Deals funding across the country set to play an important role in Scotland’s near-term development.
“Scotland’s GDP grew by 1.4% compared to 2017, the same as the UK so the outlook for the current year, albeit in GVA terms, suggestions a slight contraction as macro-economic factors relating to Brexit come to a head, before growth accelerates to 1.6% in 2019.”
The forecast follows the latest GDP figures which showed a rise of 0.3% in Scotland from October to December – the eighth consecutive quarter of economic growth. The rise was above the 0.2% recorded for the UK as a whole over the period, as the economy slowed.