Scots economy continues to bounce back from spring lockdown

Scotland’s economy continued its recovery from the national lockdown earlier this year, official figures indicate.

Activity levels picked up after shops re-opened

The country’s GDP increased by 2.6 per cent in August, according to statistics announced today by the Chief Statistician. However, this remains well below the levels of trading activity before the pandemic struck.

This is the fourth consecutive month of increasing GDP following the large drops in March and April, but represents a slowdown from the increase of 6.4 per cent in July.

But GDP remains 9.4 per cent below the level in February, prior to the direct impacts of the order to work from home, which saw many businesses forced to stop operating.

In August there has been a more uneven pattern of growth among the main sectors of the economy than seen in recent months.

The country’s services sector is estimated to have increased by 3.3 per cent compared to July after the return of the hospitality sector, output in the production sector fell by 0.3 per cent, and construction sector output increased by 3.8 per cent.

Scotland’s economy shrank by almost a fifth at the height of the pandemic.

But the outlook remains fragile and a further slowdown is likely as a result of the fresh restrictions, which have been imposed across Scotland over the past fortnight. Those restrictions have seen bars and restaurants in the Central Belt ordered to close, while those outwith this area must shut at 6pm and have been banned from serving alcohol.

There are also fears that the the economic outlook could suffer when the UK’s Government’s furlough scheme finishes at the end of the month.

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