Claim Capital economy is recovering

Published on Wednesday 2 February 2011 10:41

BUSINESS leaders say they believe Edinburgh's economy is recovering - but have warned that the future remains uncertain.

Edinburgh Chamber of Commerce said there have been signs of positive movement in the economy, but has also admitted that it remains volatile.

In their latest political economy bulletin, Chamber leaders say: "In Edinburgh the economy appears to be recovering somewhat more strongly than the rest of Scotland and other comparable cities.

"The business start-up rate is continuing to improve, with new incorporations on an upward trend now since June.

"In the labour market, the ratio of job seekers to vacancies has risen to 3.9 from 3.4 a year ago; that is markedly better than the figures for Scotland, at 5.9 and comparator cities, 4.7."

But they add: "The picture for 2011 is uncertain. The impact of public sector cuts will begin to bite, as will tax increases such as the January VAT rise.

"The critical question is whether the current slow-down is enhanced by poor weather or something more serious that will be exacerbated by fiscal retrenchment."