Experts warn long-term impact on the economy unknown for months

SCOTLAND’S economy has improved for the first time since lockdown measures were imposed, but experts warn it could take months before the long-term consequences are known.

Officials have estimated the economy grew by 1.5 per cent in May, after plummeting by 18.9 per cent in April and 5.5 per cent in March.

Although lockdown restrictions continue to be eased, experts fear an economic ‘crisis’ is looming.

It follows an unprecedented contraction of the economy, which remains 22.1 per cent smaller than in

February. Figures this week revealed an additional 15,000 Scots are out of work since Nicola Sturgeon urged business owners to put their firms into ‘hibernation’.

A report on Scotland’s Gross Domestic Product, published by the Scottish Government, revealed that different parts of the economy are recovering at different speeds.

It found the hospitality and tourism industry continues to suffer.

Scottish Conservative economy spokesman Maurice Golden said: ‘These are catastrophic figures as the Scottish economy continues to lag behind the rest of the UK.

‘The SNP must act now to save jobs and businesses.’

Scottish Chambers of Commerce chief executive Dr Liz Cameron said: ‘The Scottish and UK Governments must work with business to accelerate investment to stimulate demand and project jobs.’

Economy Secretary Fiona Hyslop said: ‘We are determined to do everything in our power to support economic recovery and protect people’s jobs and livelihoods throughout this crisis.’