'No-deal' Brexit will plunge Scotland into recession next year, warns chief economist

Finance secretary Derek Mackay
Finance secretary Derek Mackay
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Scotland faces the prospect of a recession next year in event of a No Deal Brexit, the country's chief economist has warned.

Brexit uncertainty has hit investment in Scotland and will jeopardise future growth, as business and consumer confidence continues to plummet, according to the latest State of the Economy report, published by Chief Economist Gary Gillespie.

Read more: Derek Mackay: No-deal could ‘wipe out’ two years of Scottish growth

It comes after it emerged this week that Scotland's economy shrunk in the second quarter of the year, while unemployment has also soared in recent months.
The report today warns that a ‘no-deal’ Brexit remains a live risk which could push the Scottish economy into recession in 2020.
Economy Secretary Derek Mackay said: “Following the publication of GDP figures this week, this report is another warning of the worrying impact that Brexit uncertainty is already having on the Scottish economy and the risks it presents for the future.
“There is no doubt that any form of Brexit will damage our economy and a ‘no deal’ would be disastrous for Scotland and could push the country into recession. A ‘no deal’ Brexit is completely unnecessary but seems to be the outcome the UK Government is now actively pursuing."

Read more: Recession fears as Scotland's economy falls into downturn

Mr Mackay warned last week that two years of economic growth could be wiped out in Scotland under the worst case scenario of Brexit.
He added: “The Scottish Government has been clear and consistent that the best option for the future wellbeing and prosperity of Scotland is to stay in the European Union.
“We are already taking steps to protect jobs and our economy from Brexit but not every impact can be mitigated. We will continue to stand firm against efforts to take us out of the EU against our will.”