Close to zero
Expert warns lack of growth since 2004 ‘shows no signs of ending’
AN EXPERT claims growth in Scotland has been close to zero since 2004 and our poor productivity record shows no sign of ending.
Political economist John McLaren stripped out fluctuations in figures to reach the downbeat assessment.
He said a “jump” in 2010 was exceptional, adding: “It could be claimed that the post-2004 productivity growth rate for Scotland is close to zero.”
McLaren said comparable figures show trends for the UK as a whole have been “just as poor”. His report shows the recent slowdown is a “worry” but has its roots much further back.
He said: “Scotland’s very poor productivity record of late precedes the financial crisis and shows no signs of ending.
“This problem is compounded by beneficial economic forces in recent decades being replaced by pernicious ones in the future.
“This makes it doubly important to find a way to return to productivity growth. Scottish Government policies are probably insufficient to achieve this and more radical ones may well be needed.” Labour’s Jackie Baillie said: “This important report should jolt the SNP Government into action, instead of the same tired old lines about the economy being on solid foundations.” A Holyrood spokesman said: “Scotland’s economy is growing despite the uncertainty caused by a looming Brexit outside the single market, which poses a huge threat to jobs and investment.”