SCC: Scotland Can Buck Contraction in GDP

Wednesday 25th April 2012

Commenting on the release of official data which shows that the UK economy contracted by 0.2% in the first three months of 2012, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:

“Clearly it is disappointing that the UK economy has slipped back into recession over the past six months.  It is fairly common following a deep and lengthy recession, such as that experienced in 2008-09, that the economy suffers a further dip before returning on a path to growth and that may be what is happening here.

“That said, this negative picture of the first three months of 2012 is not one that we recognise in Scotland, either in the Scottish Chambers of Commerce’s recently published business survey or in a host of other Scottish surveys published over recent weeks.  We suspect that the Scottish economy has not suffered in the way that the rest of the UK has suffered and we are optimistic that the official Scottish GDP figures for the first quarter, which will not published until July, may reveal a more positive situation north of the border.

“At a UK level, these figures nonetheless underline the fragile nature of the current economic situation and reinforce the case for further action by the UK Government to support businesses as they work to grow and to create jobs.  It has already missed an opportunity to axe this year’s unfair 5.6% increase in business rates bills – a decision which has been mirrored by the Scottish Government.  What business needs from government is realistic access to finance, lower rates bills, improved opportunities to win contracts from the public sector and direct support to business to help them create new employment opportunities.”

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