Green shoots of economic recovery from virus despite new recession

Scotland’s economy is showing signs of the beginning of a slow recovery from the damage caused by Covid-19, new statistics have shown.

For the second month in a row, Scotland has seen its GDP grow, but the economy is still significantly below pre-pandemic heights.

The latest economic data shows Scotland has now officially entered recession, with GDP almost a fifth lower than it was before the country entered lockdown.

Experimental statistics from the Scottish Government which estimate the growth of the economy by month states that Scotland saw growth in its GDP of 5.7 per cent compare to an increase of 2.3 per cent in May. That follows drops of 19.2 per cent in April and 5.8 per cent in March, and comes after it was officially announced the UK faced its first recession in 11 years last week.

The statistical release states: “The unprecedented nature of this drop in output can be contrasted to the financial crisis and recession in 2008 and 2009, where GDP decreased by around 4 per cent over the course of 18 months.”

Despite the improvement in the economy’s performance, the country is still 17.6 per cent below pre-covid-19 levels.

All of the main sectors of the economy have seen increases in activity, but estimates for the whole of the second quarter of the year – April to June – suggest a drop in GDP of 19.7 per cent compared to Q1 figures of a drop of 2.5 per cent.

Maurice Golden, the Scottish Conservative’s economy spokesman said: “It’s clear that Scotland’s economy is recovering from the pandemic slower than the rest of the UK and this is unfortunately going to hit Scottish jobs and incomes hard.”

Green co-leader Patrick Harvie said the figures were “yet another reminder” that GDP figures were a “terrible measure of economic progress”.