COMMENT

behind the rest of the UK, with a flagship report by the Fraser of Allander Institute (FAI) last week indicating this is likely to remain the case in the years ahead. And while growth in Scotland has been hit by the fall in oil and gas prices, the FAI insists this alone can no longer be blamed for the country persistently struggling.

Today’s CEBR report predicts UK growth will be just 1.3 per cent in 2017, a substantial downward revision from an earlier forecast of 1.7 per cent. The forecast for 2018 has also been revised down to 1.2 per cent from 1.6 per cent in the face of “political uncertainty”, lower business investment because of Brexit and weaker consumer spending.

If borne out, this would make 2018 the year with the slowest GDP growth since 2009.

A Scottish Government spokesman said: “Brexit is far and away the biggest threat to Scottish jobs, investment and living standards – and an extreme Brexit, taking us outside the world’s biggest single

“We now think that adealwiththeeuon Brexit is more likely, which will benefit both the UK and the remaining members of the EU”

NINA SKERO, CEBR