UK economy crawls at just 0.2 per cent growth
THERE was relief today (6 June) as figures showed that Scotland has not re-entered recession, growing by an unexpected but still weak 0.8 per cent.
Official figures showed the UK slowing to 0.2 per cent growth, bringing one of the worlds largest economies close to negative growth.
The figures mean that Scotland is out-stripping the rest of the UK, after a protracted period where the reverse was the case.
The Scottish Conservatives found themselves rowing back on a statement released last night, predicting a woresening slowdown and offering advice on how it should be remdied.
However, some economic analyists warned that the picture for the Scottish economy remained far from rosy.
Head of research for the Common Weal think tank, Craig Dalzell, said: “The long term decline of the construction industry is a particular concern not just for the jobs in the sector (although they appear to be holding up for the moment despite the drop in orders) but for the effects further down the economy.
“I’d be worried that a continued decline in construction could limit growth in the housing sector which could put pressure on rents, and associated things, up even further. People are already spending a large fraction of their household income on keeping a roof over their head so any further pressure there could trigger a contraction in, for example, consumer spending (something that’s already dropping) or end up with people taking on even more debt.”
The Scottish Tory wishlist to help the Scottish economy included slashing taxes to help businesses and the ariline industry – policies which have failed to lift the UK economy out of decline.
The UK economy now trails behind the major EU economies for growth and income recovery since the 2008 crash.
Picture courtesy of William Warby
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