Risk of a return to recession is ‘falling’

THE risk of return to recession has reduced, according to a bank economist.

A survey of businesses in Scotland suggests that while growth is not picking up pace, confidence in economic prospects has grown.

The Lloyds TSB Scotland business monitor for the three months to February showed 29 per cent of firms increased turnover, 36 per cent experienced no change and 35 per cent experienced a decrease.

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The findings are slightly down on the previous survey but a “substantial improvement” when compared with the same time last year, the survey suggests.

Donald MacRae, chief economist at the bank, said: “The risk of a return to recession or a double dip has reduced and the likelihood of growth, albeit low, in the Scottish economy for 2012 has improved.”

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